0:01 AM, 27th March 2025, About 4 weeks ago
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The cost of renting in the UK grew by 8.1%, reaching an average of £1,326 in the 12 months to the end of February, the Office for National Statistics (ONS) reveals.
However, that’s a slowdown from the 8.7% increase recorded in the 12 months to January.
Meanwhile, house prices have also risen, climbing 4.9% to an average of £269,000 in the year to January, accelerating from a 4.6% increase in the prior period.
The ONS says that rent growth varied by region with tenants in England facing an 8.3% hike, bringing averages to £1,381, while Welsh renters saw an 8.5% jump to £785.
Scotland’s increase was more modest at 5.8%, with averages hitting £998.
Northern Ireland, measured to December 2024, recorded an 8.1% rise, lifting rents to £832.
London topped England’s rent inflation chart with a 9.9% surge in the year to February, though this eased from 11% in January and a peak of 11.5% in November 2024.
Renters in Yorkshire and the Humber saw the smallest climb at 4.8%, down from 5.2% the previous month.
The capital also boasted the highest average rent at £2,235, with Kensington and Chelsea leading at £3,643.
In contrast, the North East offered the lowest at £715, while Scotland’s Dumfries and Galloway recorded £526.
Property type influenced rents too with detached homes commanding £1,517 monthly, while flats and maisonettes averaged £1,301.
Larger properties with four or more bedrooms fetched £1,989, dwarfing one-bedroom units at £1,074.
Meanwhile, the ONS says that house prices are still rising and in England the average sale price reached £291,000 in January, up 4.8% or £13,000 from a year ago, outpacing the 4.4% growth to December 2024.
Wales saw a robust 6% increase to £210,000, bolstered by a 0.9% monthly gain in January after a 2.1% drop the year before.
Scotland’s homes rose 4.6% to £187,000, a dip from 5.9% the prior period, while Northern Ireland hit £183,000 in Q4 2024, up 9.0%.
Tom Bill, the head of UK residential research at Knight Frank, said: “The Renters’ Rights Bill creates uncertainty for landlords which may put upwards pressure on rents at a time when they are starting to come down from the highs of recent years.
“A piece of legislation intended to make life easier for tenants may inadvertently have the opposite effect if the supply of rental properties tightens.”
Propertymark’s chief executive, Nathan Emerson, said: “With there being a decreased focus on the supply of new rental properties in the UK government’s Renters’ Rights Bill, it sadly comes as little surprise that rents continue to increase.
“However, there are reasons to believe that they have not increased at the rate they have done in previous years. For example, recent data has found that annual rent inflation for new lets is running at its lowest level for 3.5 years.”
Gareth Atkins, the managing director of lettings at Foxtons, said: “The rental market in 2025 is showing a more measured pace compared to the intense competition of previous years.
“Tenants are no longer making snap decisions to beat out the competition and are instead taking more time to explore their options and compare neighbourhoods before committing.
“At the same time, landlords are adjusting to evolving renter expectations by maintaining well-presented properties and setting competitive pricing. With the upcoming Renters’ Rights legislation, the market is expected to further emphasise quality and value.”
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