UK private rents have continued to rise steadily, increasing by 3.5% in the year to April 2026, while house prices have stalled, according to the latest figures from the Office for National Statistics (ONS). This divergence highlights ongoing pressures within the rental market amid a more subdued housing sales environment.
Rents rise across the UK
The average UK private rent reached £1,381 in April 2026, marking a 3.5% annual increase, up slightly from 3.4% in March. All four nations of the UK saw rents rise, with England’s average monthly rent climbing to £1,438, an increase of £48 compared to the previous year.
Regionally, the North East experienced the highest rent inflation at 6.5%, while London recorded the lowest at 2%. Despite this, London boroughs remain the most expensive, with Kensington and Chelsea commanding an average rent of £3,597 per month. Outside the capital, Oxford had the highest average rent at £1,956, whereas Dumfries and Galloway in Scotland had the lowest, at £552.
Nationwide rental trends
Wales saw rents increase by 4.9% to an average of £834, slightly ahead of March’s 4.8% rise but still well below the peak of 8.9% recorded in March 2025. Scotland’s average rent rose by 2.0% to £1,019, a modest increase of £20 over the year, marking the lowest annual growth rate in over four years. Northern Ireland’s latest figures, from February, showed a 4% rise to £877, up £34 from the previous year.
House prices stall amid market uncertainty
In contrast to rental growth, average UK house prices remained unchanged at £268,000 in the 12 months to March 2026, according to ONS data. This 0% annual growth represents a decline from 1.7% in February and is the lowest inflation rate since April 2024. The slowdown followed a 0.4% monthly fall in average prices between February and March 2026, compared with a 1.2% rise in the same period a year earlier, prior to the April 2025 Stamp Duty Land Tax changes in England and Northern Ireland.
Regional house price movements
In England, the average house price fell by 0.6% to £290,000, down £2,000 from the previous year. Wales recorded a 2.9% annual increase to £213,000, slightly lower than February’s 3.3% growth. Scotland’s average price rose by 1.6% to £187,000, an increase of £3,000, though this was also down from 2.5% growth in February. Northern Ireland remained the strongest market, with prices up 7.4% to £198,000, a £14,000 increase over the year.
Industry perspectives on rental and housing trends
Nathan Emerson, CEO of Propertymark, emphasised the ongoing imbalance between tenant demand and housing supply. He noted, “While figures released today show an easing of inflation compared to the previous month, rents are still moving upwards because supply remains constrained in many local markets.” Emerson highlighted strong competition for quality rental homes, especially family properties and those near transport and employment hubs, with many landlords cautious due to rising costs, taxation, and regulation.
Louisa Sedgwick, managing director of mortgages at Paragon Bank, pointed to the relationship between rent and wage inflation, stating, “Rent inflation has historically tracked wage inflation, and we have seen this relationship harmonise in the past year following the severe upwards pressure on rents in the post-Covid era.” She also warned of inflationary pressures from international conflicts impacting the rental market, with 72% of landlords planning rent increases citing rising operational costs and tax burdens.
Jeremy Leaf, a north London estate agent and former RICS residential chairman, observed that the data predates the Renters’ Rights Act introduced in May 2026. He remarked, “The significant number of landlords selling due to concerns about the operation of the new measures meant rents hardened and even rose for some smaller properties due to lack of supply.” Leaf also noted that cost-of-living worries continue to temper landlords’ expectations for higher returns.
Richard Donnell, executive director of research at Zoopla, explained that house price inflation has stalled largely due to budget uncertainty over housing taxation in late 2025. He expects house price inflation to resume as buyer activity increases, with a forecast of 1.2 million housing sales in the coming year, only slightly below last year’s figures.
What this means for landlords
The ongoing rise in rents amid constrained supply suggests landlords remain in a strong position to achieve rental growth, particularly in regions with high demand and limited stock. However, rising operational costs and regulatory changes are influencing landlord behaviour, with some exiting the market, which may further tighten supply and sustain upward pressure on rents.
Landlords should be aware of the evolving legislative environment, such as the Renters’ Rights Act, and consider how these changes might affect their portfolios and rental strategies. Meanwhile, the stagnation in house prices indicates a cautious sales market, which may encourage some landlords to hold onto properties for rental income rather than selling.
Source: Based on reporting from Property118
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Source: www.property118.com
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