However, it's not as high as it once was: rents in the region have notably cooled from last year’s blistering 9.4% jump, so even though rent remains high, the pace of increase is slowing.
Across the UK, average rental inflation has also begun to ease. Zoopla reports a national average increase of just 2.8% for new tenancies year-on-year—less than half of last year’s 6.4% and the slowest rise since July 2021.
Meanwhile, ONS data via the PIPR (Price Index of Private Rents) shows a 7.0% increase in average private rents across the UK as of May 2025—but even that marks a slowdown from April’s 7.4%
A 5.2% rent increase in the North East risks translating into real austerity for student renters. With limited incomes and, in many cases, financial dependency, students must increasingly compromise. Students face an increased risk of cost-cutting in areas such as location, comfort, and overall budget - in order to manage finances.
For student renters, a 5.2% increase represents a tangible squeeze. It means higher monthly payments that could consume a larger portion of already stretched finances—making housing decisions even more challenging.
The data is clear, but what does this mean for students?
Even as acceleration slows, a 5% rent increase adds significant pressure to student budgets. That often means working more hours or depleting savings to cover the rising cost of housing, resulting in a financial squeeze that may harm the student's well-being.
Students may also deprioritise essentials or social time, choose smaller or shared accommodations, or cut back on study-related spending to keep housing affordable.
Despite a slowdown in inflation, rental affordability remains tight. Supply pressures persist—Zoopla notes demand remains over 60% higher than pre-pandemic levels, while supply is still lagging. In this environment, students continue to face high competition and diminished options.
Even though the dramatic double-digit rental growth of last year has slowed down, 5.2% is still steep for students. It signals that rental inflation remains stubborn, especially in traditionally lower-cost regions like the North East. With incomes and support often fixed, students must increasingly juggle work, budgets, and academic commitments just to keep a roof over their heads.