Private rents across the UK continue to rise, though the pace is beginning to slow. According to the latest figures from the Office for National Statistics (ONS), average monthly rents have gone up by 6.7% in the 12 months to June.
This brings the average rent to £1,344. While still a notable increase, it marks a slight slowdown from the 7% annual rise recorded in May. This also makes it the sixth month in a row where rental inflation has decelerated.
In England, renters are now paying an average of £1,399 per month, reflecting a 6.7% increase compared to the previous year. Meanwhile, Wales has seen a more significant jump of 8.2%, pushing average monthly rents to £804.
Scotland’s rental growth has been more modest, with a 4.4% increase bringing the average rent to £999. In Northern Ireland, where figures are current up to April 2025, rents have risen by 7.6%, with the average now at £852.
There are also clear regional differences within England. The North East saw the fastest growth, with rents climbing 9.7%, while Yorkshire and the Humber recorded the smallest increase at 3.5%.
Latest UK house prices
House prices across the UK have risen by 3.9% over the year to May, according to data from the Office for National Statistics (ONS). This brings the average property value to £269,000.
The increase builds on the 3.6% annual growth recorded in April. However, a slight drop in the price index between March and April—likely influenced by changes to Stamp Duty Land Tax (SDLT) that came into effect on 1 April—tempered the overall pace of growth.
In England, the average house price in May reached £290,000. This marks a £9,000 rise from the previous year, representing a 3.4% increase.
Wales experienced stronger growth, with house prices climbing 5.1% to an average of £210,000. Scotland saw an even greater increase of 6.4%, taking average prices up to £192,000.
Northern Ireland posted the highest growth of all UK nations. In the first quarter of 2025, house prices rose by 9.5% year-on-year, with the average property now valued at £185,000.
Property sector reaction to the ONS rent data
Gareth Atkins, Managing Director of Lettings at Foxtons, shared that the London rental market remained steady in June. He noted a 21% rise in applicant numbers compared to May, alongside the highest level of new listings seen in the last four years.
This rise in available properties is offering some relief for renters as seasonal demand picks up. With more prospective tenants entering the market, well-positioned landlords across London are likely to benefit from strong interest.
Sarah Coles, Head of Personal Finance at Hargreaves Lansdown, described the ongoing challenges for renters as relentless. However, she acknowledged that the pressure has slightly eased, comparing it to a softer, though still impactful, blow.
She also highlighted a gradual rebalancing in the market. Although data from RICS shows landlords continue to sell their rental properties, tenant numbers appear to be holding firm.
Louisa Sedgwick, Managing Director of Mortgages at Paragon Bank, pointed out that while rent inflation is beginning to slow, the reduction is modest—just 0.3 percentage points. She explained that despite the small decline, rents are still rising faster than they were before the pandemic due to the ongoing gap between supply and demand.
She added that in the long run, population growth and demographic shifts are expected to keep demand for rental homes high.
Alex Upton, Managing Director of Specialist Mortgages and Bridging at Hampshire Trust Bank, also observed that rent increases are continuing but at a slower rate than last year. He mentioned that although the supply and demand gap is still present, early signs suggest the market might be starting to level out.
Richard Donnell, Executive Director of Research at Zoopla, noted that rent growth is losing momentum. Factors such as tighter affordability, slowing immigration, and relaxed mortgage rules are making it easier for higher-income renters to transition into homeownership.
He also pointed out that the growth in rents for new tenancies—the main driver of the ONS index—is now at its slowest rate in four years.
Nathan Emerson, Chief Executive of Propertymark, expressed concerns over falling investment in the private rental sector. He attributed this to various tax and regulatory changes over the past decade, along with recent increases in Stamp Duty on second homes.
Emerson emphasised the importance of a strong and stable rental market in the UK, saying it is essential to provide housing choices for those who need a place to live.
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