The rate of rental growth in the private rented sector has fallen by around a third over the past year, according to official data released this morning (22 August).

The Office for National Statistics (ONS) will this morning release new figures showing that average private rents increased by 5.9% across the UK in the year to July, down from an annual growth of 8.6% during the previous 12 months.

The slower rent increases come amid signs of a slight easing of pressures in the rental market. According to the property listing platforms Zoopla and Rightmove, there are now signs of a slight uptick in the supply of rental housing.

However, the National Residential Landlords Association (NRLA) warned that recovery in the rental market remains fragile, with demand for rental housing still outstripping supply.

Data from research consultancy Pegasus Insight found that 71% of NRLA members continue to report strong tenant demand for their properties.

Landlord confidence in the UK economy is also at rock bottom, with just 2% reporting confidence in it ahead of the Autumn Budget – the joint lowest level ever recorded by Pegasus Insight.

The NRLA is calling on the government to use the forthcoming Budget to support long-term investment in new decent-quality rented housing.

The group claims the government must work with the sector to ensure a credible plan is in place to implement the Renters’ Rights Bill with as little disruption to the market as possible.

Ben Beadle, chief executive of the NRLA, said: “While a slowdown in rent increases will be of some relief to tenants, the rental market remains in a fragile state.

“Tenants across the country continue to face the reality of there not being enough homes to meet demand. Meanwhile, the sector is craving certainty about how the government plans to implement the biggest overhaul of the market for almost 40 years.

“Now is the moment for ministers to get behind a clear, credible plan that eases pressure on renters, supports investment in new homes to rent and ensures the smooth implementation of the Renters’ Rights Bill.”

Aimee North, lead analyst at the ONS, said: “House price annual inflation continues to pick up, with the average UK house price now at around £269,000. Annual private rents inflation has slowed across the whole of the UK for the seventh consecutive month.”

Falling rental growth sits alongside an increase in price growth in the home sales market. House price inflation accelerated last month, with the average UK house price increasing by 3.7% to £269,000 in the 12 months to June.

The ONS revealed an uptick in price growth after a 2.7% rise was reported in the 12 months to May.