Paragon comments on ONS’ Price Index of Private Rents

20 May 2026

Commenting on the Office for National Statistics’ latest Price Index of Private Rents, Louisa Sedgwick, Managing Director of Mortgages at Paragon Bank, said:

“Rent inflation has historically tracked wage inflation and we have seen this relationship harmonise in the past year following the severe upwards pressure on rents in the post-Covid era.

“The conflict in Iran is building some further inflationary pressure into the economy and that will likely to be reflected in the rental market in the coming months. Landlords are not immune to cost pressures and 72% of those planning to increase rent in the next year will do so because of the rising costs they face in operating their business, with six in 10 citing a higher tax burden following the 2025 Autumn Budget.

“Rising mortgage rates are often claimed to be a driver of rental inflation, but less than 40% of rental properties are mortgaged, with the vast majority of those subject to a fixed-rate mortgage, so the impact of mortgage rates increasing is unlikely to be felt across the broader rental sector.”