Rent growth slows in November as house price inflation also eases

Private rents in the UK rose by 4.4% over the year to November, taking the average monthly cost to £1,366, according to the Office for National Statistics.

The increase marks a slowdown from October and signals the weakest annual rise in more than three years.

England recorded an average rent of £1,422, up £60 on last year, with annual growth also easing to 4.4%.

The rate was lower than the previous month and represented the softest inflation since July 2022, pointing to a gradual loss of market momentum.

Average rent prices

Wales continued to see stronger rent pressure, with typical rents reaching £820 after a 6.1% yearly increase.

The pace of growth has slipped back from October and remains well below the peak seen during 2023.

Scotland followed a similar pattern, as rents climbed to £1,012 but annual growth slowed to 3.3%, the lowest rise for more than three years.

Northern Ireland showed average monthly rents of £871 in September, reflecting a 6.4% increase over twelve months.

While still high, the figure extended a longer period of cooling after last year’s highs.

Where rents rose

In England, the North East again posted the fastest annual growth at 8.4%, although this too was lower than a month earlier.

London sat at the other end of the scale, with rents rising by 2.8%, the twelfth consecutive month of slowdown.

Since peaking last November, the capital’s annual rate has fallen by 8.7 percentage points.

Despite slower growth, London remains the most expensive area for renting with an average rent of £2,271, while the North East was cheapest at £759.

House price inflation slows

The ONS also says that house price inflation continued to ease with the average UK value rising by 1.7% in the year to October.

That increase takes the typical house price to £270,000, down from a 2% annual rise in September.

In England, the average home cost £292,000, up 1.4% or £4,000 over 12 months, while Wales saw prices reach £211,000 after a 1.5% increase.

Scotland recorded firmer growth, with values rising 3.3% to £192,000, though this still marked a slowdown from earlier in the year.

Northern Ireland stands out, with the average price reaching £193,000 in the third quarter, up 7.1% compared with the same period in 2024.

Property sector reaction

Alex Upton, managing director, specialist mortgages and bridging finance at Hampshire Trust Bank, said: “While the pace of rental growth has slowed, 2025 still delivered significant increases, underlining how stretched the private rental sector remains. That pressure is not easing.

“The recent Budget has added to it, with the government’s own figures showing 2.4 million landlords will face higher taxes by the end of this Parliament.

“For some, that could be the point they call time on their portfolios.”

Richard Donnell, executive director of Zoopla, said: “Slower house price inflation reflects higher stamp duty costs for home buyers and the impact of Budget uncertainty on the market with annual price falls across London.

“Rental inflation continues to slow as a result of weaker demand and 20 per cent more homes available to rent. Lower migration and easier conditions for first time buyers is why demand for rented homes is at a six-year low.”

Nathan Emerson, the CEO of Propertymark, said: “Though it might be disappointing for many to see that rents on average have increased overall, it is encouraging to see that through 2025, we have witnessed rental inflation trending downwards.

“There remains an unhealthy imbalance between rental supply and demand, however, which continues to contribute to rental prices edging upwards.

“It has been positive to see attention focused on ensuring higher standards and greater consumer protection for those who choose to rent during the year; however, it also remains fundamentally important that investment is encouraged to keep pace with ever-growing demand, as the population continues to expand.”

Nick Leeming, chairman of Jackson-Stops, said: “The numbers tell a simple story: the floor is holding, but the froth has gone.

“Reflecting the month before the Budget, the ONS figures confirm a market that has been subdued as many waited for fiscal clarity from the Chancellor, but importantly, house prices held their nerve.

“Market fundamentals keep the wheels turning with prices gently up on the year and remaining stable month-to-month, building a picture of quiet confidence even when under economic strain.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “Now that the Renters’ Rights Act has become a reality, landlords can see the extent of the changes on their businesses in plain sight.

“As a result, we are seeing some landlords consider exiting the sector with a fair number awaiting a post-Budget sales bounce and we expect to see a further reduction in stock before the Act fully comes into force.

“However, affordability, driven particularly by employment concerns, have held back tenants from overpaying, which explains rents softening in some parts of the market.”