0:01 AM, 20th February 2025, About 12 months ago
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Private rent prices across the UK saw a slight dip in their annual growth rate, while house values continued to climb, the Office for National Statistics (ONS) reveals.
Its data shows that the average rent rose by 8.7% in the year to January 2025.
That’s a drop from the 9% growth recorded in the 12 months ending in December 2024.
Regionally, average rental figures reached £1,375 in England (an 8.8% rise), £780 in Wales (an 8.4% increase) and £995 in Scotland (a 6.2% jump) over the same period.
Northern Ireland experienced an 8.3% increase in the 12 months up to November 2024.
Within England, the capital, London, witnessed the steepest rental inflation at 11.0%, while Yorkshire and The Humber saw the lowest at 5.3%.
Propertymark’s chief executive, Nathan Emerson, said: “Increases in rental prices across the UK have been an ongoing concern and our member agents continue to emphasise key issues regarding the continuous trend of lack of rental stock versus an ever-growing number of tenants looking for homes.
“Selling up altogether or turning to the short-term letting market is becoming a more attractive option for landlords due to the challenging legislative changes and increased financial liabilities they face.”
He adds: “It’s crucial that a healthy mix of homes of all types and tenures is encouraged throughout the entire UK.
“Governments across all nations have made various pledges regarding housing building targets, however, a crucial factor to ensure is that good landlords providing secure and decent homes to the nation are supported and not penalised.”
Sarah Coles, the head of personal finance at Hargreaves Lansdown, said: “Renting makes everything harder, and rising rents are adding to the misery. It puts tenants on the back foot when it comes to every aspect of their finances.
“While rent rises are slowing, they’re still horrible, and there doesn’t appear to be much hope in sight.
“While the latest RICS survey showed tenant demand relatively flat, the number of properties available continued to fall, so rents will keep rising.”
She added: “It means saving for a deposit is as difficult as it is essential if people are to escape the vicious rental cycle.
“They need all the help they can get, whether that’s from family helping out or taking advantage of free money from the government through a Lifetime ISA.”
Meanwhile, the ONS also reveals that the average UK house price reached £268,000 in December 2024, a 4.6% year-on-year increase.
This is up from 3.9% growth in the 12 months to November 2024.
Across the nations, average house prices were £291,000 in England (a 4.3% rise), £208,000 in Wales (a 3.0% increase) and £189,000 in Scotland (a 6.9% increase).
Mr Emerson said: “With house prices remaining buoyant, this indicates that the wider economy continues to stabilise, and people are feeling confident in their personal financial positions.
“We have also witnessed interest rates track downward steadily since last summer and will hopefully see continued progression heading further into the year, should the Bank of England feel confident that conditions are safe to consider further base rate dips.
“With governments across all UK nations planning on building more new homes at scale over the coming years, if done effectively, this should help even out house prices and supply across the entire country.”
He added: “Alongside this, as confidence and affordability in the housing market continue to grow, and as homeowners witness enhanced levels of equity within their properties, we expect affordability pressures to further ease, allowing more aspiring and current homeowners to make their next home move.”
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