UK rent growth slows as house prices edge up – ONS

The UK’s private rents rose by 3.4% in the year to March, taking the average monthly figure to £1,377, the Office for National Statistics (ONS) says.

The annual increase was lower than February’s 3.6% and is the slowest rate since March 2022.

In England, average monthly rents reached £1,434 in March, up £48 on the year, a 3.4% rise.

That compares with 3.6% in the 12 months to February and leaves the annual rate at its lowest point in four years.

Across England, regional variation remains with the North East recording annual rent inflation of 6.5%, while London stood at 1.7% over the same period.

Other nation rents

Wales recorded rents of £830, up £38 year-on-year, with annual growth at 4.8%.

The figure sits below February’s 5.5% and is well down on the 8.9% recorded in March last year.

In Scotland, average rents reached £1,022, an increase of £21 on the year, or 2.1%.

That is lower than February’s 2.4% and is the lowest annual rise for more than four years, following the 11.7% peak in August 2023.

Northern Ireland saw average rents at £880 in January, up £42 compared with a year earlier.

Annual growth was 5.0%, down from 5.2% in December, following the 9.9% peak in April 2024.

House prices edge up

Average UK house prices rose by 1.2% to £268,000 in the 12 months to February 2026, up from 1.0% in the year to January.

England’s average property price reached £290,000, increasing by £2,000 over the year, or 0.8%.

That compares with 0.7% annual growth recorded previously.

In Wales, prices rose to £210,000, up £5,000 year-on-year, a 2.5% increase.

This follows 1.8% growth in the 12 months to January.

Scotland recorded an average house price of £187,000, up £4,000 on the year, or 2.3%, compared with 1.4% previously.

Northern Ireland recorded an average price of £196,000 in the fourth quarter of 2025, up £12,000 year-on-year, equating to 7.5% growth.

Property sector reaction to ONS rent data

Nathan Emerson, the CEO of Propertymark, said: “Rising rental prices continue to reflect the chronic imbalance between supply and demand in the private rented sector.

“Letting agents across the UK are consistently reporting high tenant demand alongside a shortage of available properties, which is inevitably placing upward pressure on rents.”

Richard Donnell, the executive director of research at Zoopla, said: “Rental inflation has slowed and this will be welcome news for renters.

“For landlords, rents rising at over 3% is positive but for some this may not be enough to offset the extra costs and regulation from the Renters Rights Act which starts from 1 May.

“Low investment in growing the stock of rented homes is supporting rents rising faster than house prices.”

Alex Upton, the managing director of specialist mortgages at Hampshire Trust Bank, said: “Rental growth has slowed from the peaks seen over the past two years, but the underlying pressure has not gone away.

“Demand continues to outstrip supply in many parts of the market, particularly for well-located and better-quality stock, and that imbalance is likely to persist while delivery of new housing remains below what is needed.”

Jeremy Leaf, a north London estate agent and a former RICS residential chairman, said: “The most comprehensive of all the rental market surveys shows that rents are still rising but not as quickly as previously, partly due to worries about inflation having an impact on affordability.

“However, rents may have dropped further if they weren’t supported by a shortage of stock, exacerbated by landlords leaving the sector ahead of the introduction of the new Renters’ Rights Act at the beginning of May.”

Tom Bill, the head of UK residential research at Knight Frank, said: “Although rental value growth has been declining, the Renters’ Rights Act could increase upwards pressure on rents as landlords mitigate higher risks around repossessing their property or guaranteeing rental income.

“Any further reduction in supply as landlords sell up could also increase the financial squeeze on tenants.”