The average cost of renting a home in the United Kingdom has climbed at its fastest pace this year following the implementation of Labour’s Renters’ Rights Act in England, according to recent data from the Office for National Statistics (ONS).

Figures indicate that the average monthly private rent across the UK rose by 3.8 percent to £1,400 in the 12 months ending in August, marking an increase from 3.7 percent in the year to July. This represents the highest rental inflation recorded since December of the previous year, coinciding with a decline in the supply of rental properties reported for the first time in three years during July.

The Renters’ Rights Act, which took effect in England at the start of May, introduces measures including a ban on no-fault evictions and strengthens tenant protections. The property sector has expressed concern that these changes could contribute to higher rents and a reduction in available rental properties as some landlords may choose to exit the market. However, government ministers have maintained that the legislation is intended to reduce the pace of rent increases.

Regional data from the ONS reveals that average rents in the year to August rose by 4 percent in England, reaching £1,459 per month; 4.3 percent in Wales, where the average rose to £846; and 1.1 percent in Scotland, with an average of £1,013. London remains the most expensive rental market, with average rents at £2,332 monthly, while the North East recorded the lowest average at £788.

Criticism of the act’s impact has come from Conservative housing spokesman David Simmonds, who stated that despite Labour's assurances that the changes would benefit tenants, the result has been higher rents amid a shrinking rental market. Supporters of the legislation argue that its long-term effect will provide renters with greater security and stability, though this has yet to be reflected in rental price trends.