UK rent growth slows again as house prices rise – ONS

Landlords saw rent growth slow down again in May, although average monthly payments still climbed to £1,383 across the UK.

Figures from the Office for National Statistics show private rents rose by 3.3% in the 12 months to May.

That’s down from an annual growth figure of 3.5% in April.

Average rents in England increased by 3.4% to £1,442 a month, while landlords in Wales saw a sharper 4.7% rise to £836.

Rent rises in the nations

Scotland recorded the weakest increase among the three nations covered by the May figures, with average rents up 1% to £1,009.

Northern Ireland’s average rents reached £876 in the 12 months to March 2026, an annual rise of 3.3%.

Within England, the North East recorded the strongest rent inflation at 5.9%.

London was at the other end of the table, with annual rent growth of 2.0% in the year to May.

UK house prices rise

Meanwhile, house price growth accelerated in April after remaining flat on an annual basis in March.

The average UK property price rose by 3.8% in the 12 months to April 2026, reaching £270,000.

Average UK house prices increased moderately between March and April this year.

In the same period during 2025, prices dropped sharply after Stamp Duty Land Tax changes took effect in England and Northern Ireland on 1 April.

In England, the average house price rose by 3.9% to £291,000 in the year to April.

Prices increased by 3.5% to £212,000 in Wales and by 2.8% to £192,000 in Scotland.

Property sector reaction to the ONS UK rent price data

Tom Bill, the head of UK residential research at Knight Frank, said: “Rental value growth remains stubborn and rents are around a third higher than before Covid.

“The reality of the Renters’ Rights Act and the prospect of future legislation may encourage more landlords to sell up, which means tenants will continue to feel financially squeezed.”

Nathan Emerson, the CEO of Propertymark, said: “Continued rental growth demonstrates the ongoing imbalance between supply and demand within the private rented sector.

“Letting agents across the UK continue to report strong tenant demand alongside a shortage of available properties.

“Increasing the supply of rental housing must remain a priority if affordability pressures facing tenants are to be addressed.”

Alex Upton, of Hampshire Trust Bank, said: “The headline rate of rental inflation from the ONS does not tell the whole story in the private rented sector at the moment.

“Recent analysis from Hometrack highlighted a ‘two-speed’ rental market, where areas with rents below £1,250 per calendar month are still seeing much stronger rental growth than higher-cost locations.

“We’re having far fewer conversations centred around expansion for the sake of growth and much more focus on portfolio quality and more dependable income.”

Richard Donnell, executive director of research at Zoopla, said: “The boom in rents is over and the pace of rent increases is slowing on a weaker labour market and a big drop in migration into the UK.

“A period of more sustainable growth in rents will be welcome news for renters while providing continued growth in income for landlords to offset higher costs of doing business.”

Jeremy Leaf, a north London estate agent and a former RICS residential chairman, said: “Often we have found on the ground that lettings activity and rents are in inverse proportion to sales. This time around though, while sales are rather subdued, lettings are also still sluggish.

“A significant proportion of landlords are selling due to concerns about the Renters’ Rights Act which is still underpinning rents but worries about the cost of living have kept a lid on any further increases.”