10:04 AM, 16th April 2025, About 3 months ago
Text Size
The cost of renting and buying homes across the United Kingdom has climbed significantly, according to fresh figures from the Office for National Statistics (ONS).
Private renting costs have surged by 7.7% in the year to March 2025, bringing the average monthly rent to £1,332.
Meanwhile, house prices have risen by 5.4% in the 12 months to February 2025, with the typical home now valued at £268,000.
The 7.7% annual increase in private rents marks a slight slowdown from the 8.1% growth recorded in the year to February and is well below the peak of 9.1% seen in March 2024.
In England, the average rent reached £1,386 in March, reflecting a 7.8% (£101) uplift compared to the previous year.
This growth is less than the 8.3% rise in the year to February and the high of 9.2% in November 2024.
However, regional disparities are stark, with the North East experiencing the sharpest increase at 9.4%, while Yorkshire and the Humber saw a more modest 4.6% rise.
Wales recorded an average rent of £792, up 8.9% (£64) from a year earlier, outpacing the 8.5% growth in the prior period but falling short of the 9.9% peak in November 2023.
Scotland’s rental market, with an average of £1,001, grew by a more restrained 5.7% (£54), down slightly from 5.8% in February 2025 and far from the 11.7% high in August 2023.
Northern Ireland’s average rent hit £838 in January 2025, up 8.2% (£63), a slight slowdown from the 8.1% rise in December 2024 but below the 9.9% peak in April 2024.
Property values have also trended upwards as the average UK house price increased by 5.4% to £268,000 in the year to February, up from 4.8% in the prior 12 months.
This growth reverses the negative 2.7% annual change seen in December 2023, signalling a robust recovery in the property market.
England’s average house price reached £292,000, a 5.3% rise, while Wales saw a 4.1% increase to £207,000.
Scotland’s property market recorded a 5.7% uptick, with homes averaging £186,000.
Alex Upton, the managing director of specialist mortgages at Hampshire Trust Bank, said: “The rental market remains under significant pressure, with demand continuing to outstrip supply.
“Letting agents are managing multiple applicants for every available property.
“While stock levels have seen some movement, competition remains fierce. Until that imbalance shifts, rental prices will continue to rise.”
Nathan Emerson, the chief executive of Propertymark, said: “The rental sector continues to see sizable challenges from a magnitude of different angles currently.
“We continue to see a considerable mismatch between supply and demand with an average of 10 people wishing to rent each property currently available across the UK.
“In addition, we are seeing vast legislative changes that will affect how and if some landlords are able to continue operating within the sector.”
Tom Bill, the head of UK residential research at Knight Frank, said: “Upwards pressure on rents is likely to intensify as landlords leave the sector due to tougher green regulations, higher mortgage costs and the impact of the Renters’ Rights Bill, which makes it harder to regain possession of a property.
“Nobody would argue against protecting tenants from unscrupulous landlords, but the new legislation could be a lesson in the laws of unintended consequences.”
Nick Leeming, the chairman of Jackson-Stops, said: “We saw steady house price growth in the early months of 2025, driven by increased buyer activity ahead of the Stamp Duty Land Tax changes in April.
“Global economic uncertainty is also playing a role, with more US buyers turning to the UK for stability — particularly in markets like the Cotswolds, where we’re already seeing upward pressure on prices.
“While market volatility doesn’t directly determine sales, it does influence a buyer’s drive to purchase.”
