Rents hold at 3.5% as house price growth slows – ONS

Private rents increased 3.5% in the 12 months to February, leaving the average monthly cost at £1,374, the Office for National Statistics says.

The annual rate was unchanged from January, and England’s average rent is now £1,430, up 3.6% over the year.

Wales reached £828, a 5.5% increase, while Scotland stood at £1,022, up 2.4%.

In Northern Ireland, rents hit £875 in the 12 months to December, marking a 5.2% rise.

The 3.5% annual UK rent increase matches January and sits at the joint-lowest level since March 2022.

House prices up

Meanwhile, house prices rose 1.3% across the UK to £268,000 in the 12 months to January, down from 1.9% in December, ONS data shows.

In England, the average price reached £290,000, a £3,000 annual increase, or 1.1%.

Wales recorded £210,000, up £4,000 year-on-year, with annual growth at 2.0%, down from 4.5% previously.

In Scotland, prices rose to £188,000, increasing £3,000 over the year.

Northern Ireland’s prices averaged £196,000 in Q4 2025, up £14,000 on the year, a 7.5% increase.

Property sector reaction

Tom Bill, the head of UK residential research at Knight Frank, said: “We expect upwards pressure on rents to intensify this year due to the arrival of the Renters’ Rights Act in May.

“Any extra inconvenience around setting rents or regaining possession of a property may prompt more landlords to sell and keep supply tight, which will have the unintended consequence of financially squeezing tenants.

“This has been particularly notable in the capital, where renting is traditionally more common and demand is higher.

“Tighter green regulations in future years could notably exacerbate this supply/demand problem for landlords and tenants.”

Jeremy Leaf, a north London estate agent and a former RICS residential chairman, said: “We are continuing to see a shortage of stock, particularly prompted by landlords selling as tenancies end, due to worries about imminent tax and regulatory issues. This lack of stock and choice for tenants is supporting higher rents.

“However, over the past few weeks we have noticed some tenant resistance to paying more, bearing in mind increasing worries about the cost of living prompted by war in the Middle East.”

Nathan Emerson, the CEO of Propertymark, said: “Rents have risen year on year, and across many regions of the UK, there remains a chronic imbalance between supply and demand in the private rented sector, with far too few homes available to meet tenant need.

“Affordability pressures persist, and Propertymark data shows that 17% of member agents have reported an increase in rental costs over this period.

“The operating environment for landlords continues to evolve at pace, with an expanding legislative burden and growing expectations around environmental compliance creating significant challenges.”