Private rents across the UK have held steady with a 3.5% annual increase in the 12 months to February, according to the latest figures from the Office for National Statistics (ONS). Meanwhile, house price growth has slowed, rising by just 1.3% in the year to January, reflecting a cooling property market.

Rents steady across the UK

The ONS reports that the average monthly private rent in the UK now stands at £1,374, unchanged from January’s annual growth rate of 3.5%. England’s average rent is slightly higher at £1,430, representing a 3.6% increase over the year. Wales saw a more significant rise, with rents reaching £828, up 5.5%, while Scotland’s average rent increased by 2.4% to £1,022. Northern Ireland experienced a 5.2% rise, with average rents hitting £875 in the 12 months to December.

This 3.5% annual increase in rents is the joint-lowest since March 2022, suggesting a period of relative stability in rental growth across the UK.

House price growth slows

House prices across the UK have risen by 1.3% to an average of £268,000 in the year to January, down from 1.9% growth in December. In England, the average house price increased by £3,000 to £290,000, a 1.1% rise. Wales recorded a 2.0% increase to £210,000, although this is down from 4.5% previously. Scotland’s average price rose by £3,000 to £188,000, while Northern Ireland saw the strongest growth, with prices up 7.5% to £196,000 in the final quarter of 2025.

Industry perspectives on rental market pressures

Tom Bill, head of UK residential research at Knight Frank, highlighted the potential for increased rental pressure this year due to new legislation. He said, “We expect upwards pressure on rents to intensify this year due to the arrival of the Renters’ Rights Act in May.” Bill explained that additional challenges around setting rents and regaining possession could prompt some landlords to sell, tightening supply and financially squeezing tenants, particularly in London where rental demand is traditionally higher.

He also warned that future green regulations could exacerbate supply and demand issues, further impacting landlords and tenants alike.

Jeremy Leaf, a north London estate agent and former RICS residential chairman, noted a continuing shortage of rental stock. “This is particularly prompted by landlords selling as tenancies end, due to worries about imminent tax and regulatory issues,” he said. Leaf observed that this lack of choice supports higher rents, although recent tenant resistance to rent increases has emerged amid rising living costs and geopolitical concerns.

Nathan Emerson, CEO of Propertymark, emphasised the ongoing imbalance between supply and demand in the private rented sector. “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,” he said. Emerson also highlighted the increasing challenges landlords face from expanding legislation and environmental compliance requirements.

What this means for landlords

The current data suggests landlords are operating in a market of steady rental growth but slowing house price appreciation. The introduction of the Renters’ Rights Act and tightening regulations may reduce rental property supply as some landlords choose to sell, potentially driving rents higher due to limited availability. Landlords should prepare for a more complex regulatory environment and consider the impact of tenant affordability pressures amid wider economic uncertainties.

Maintaining compliance with evolving legislation and environmental standards will be crucial, as these factors are likely to influence landlord decisions and market dynamics in the coming months.

Source: Based on reporting from Property118

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