Private rental growth in the UK has slowed to its lowest rate in over four years, while house prices have edged up modestly, according to the latest figures from the Office for National Statistics (ONS). The data highlights ongoing regional variations in rents and property values, reflecting persistent supply and demand imbalances across the housing market.

UK Rent Growth Moderates

In the year to March 2026, private rents across the UK increased by 3.4%, reaching an average monthly rent of £1,377. This marks a slight slowdown from February’s 3.6% rise and represents the slowest annual growth since March 2022. England’s average monthly rent stood at £1,434 in March, up £48 year-on-year, also reflecting a 3.4% increase—the lowest annual rate in four years.

Regional disparities remain marked. The North East experienced the highest rent inflation at 6.5%, while London recorded the lowest at 1.7% over the same period. These figures underscore the uneven pressures across the country’s rental markets.

Rent Trends Across the Nations

Wales saw average rents rise to £830, up £38 on the year, representing 4.8% growth. This is down from 5.5% in February and significantly lower than the 8.9% recorded in March 2025. Scotland’s average rent increased by £21 to £1,022, a 2.1% rise—the lowest annual increase in over four years following a peak of 11.7% in August 2023.

Northern Ireland’s average rent was £880 in January, up £42 year-on-year, equating to 5.0% growth. This is a slight decline from 5.2% in December and well below the 9.9% peak seen in April 2024.

House Prices See Modest Increases

Alongside rental data, the ONS reported that average UK house prices rose by 1.2% in the 12 months to February 2026, reaching £268,000. This is a slight increase from the 1.0% growth recorded in the year to January. England’s average property price rose by £2,000 to £290,000, a 0.8% increase, marginally up from 0.7% previously.

Wales experienced a 2.5% rise in average house prices to £210,000, up £5,000 year-on-year. Scotland’s average price increased by £4,000 to £187,000, a 2.3% rise, while Northern Ireland saw the strongest growth at 7.5%, with average prices reaching £196,000 in the final quarter of 2025.

Industry Perspectives on the Data

Nathan Emerson, CEO of Propertymark, emphasised the ongoing supply-demand imbalance in the private rented sector. He noted, “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, executive director of research at Zoopla, welcomed the slowing rental inflation but cautioned landlords about rising costs. He said, “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.” He also highlighted that “low investment in growing the stock of rented homes is supporting rents rising faster than house prices.”

Alex Upton, managing director of specialist mortgages at Hampshire Trust Bank, pointed out that despite the slowdown, demand continues to outstrip supply, particularly for well-located and quality properties. “That imbalance is likely to persist while delivery of new housing remains below what is needed,” he added.

Jeremy Leaf, a north London estate agent and former RICS residential chairman, observed that while rents are rising more slowly, affordability concerns linked to inflation are influencing the market. He noted, “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, head of UK residential research at Knight Frank, warned that the Renters’ Rights Act could increase upward pressure on rents as landlords face higher risks related to repossession and income guarantees. He added, “Any further reduction in supply as landlords sell up could also increase the financial squeeze on tenants.”

What this means for landlords

The data suggests landlords are operating in a market where tenant demand remains strong but rental growth is moderating. With the Renters’ Rights Act coming into effect, landlords may face increased regulatory costs and risks, potentially influencing rental pricing strategies and portfolio decisions.

Regional variations in rent and house price growth highlight the importance of local market knowledge when managing properties. The ongoing supply shortage, especially of quality homes in desirable locations, continues to underpin rental values despite broader economic pressures.

Landlords should also be mindful of the potential for further stock reductions as some may exit the market in response to new regulations, which could tighten supply further and affect rental income stability.

Source: Based on reporting from Property118

TLA Training Academy

The Landlord Association has launched its new Training Academy for UK landlords, providing structured guidance, compliance education, and practical knowledge to support landlords at every stage. Members can now complete the programme and become TLA Certified Landlords at no additional cost as part of their membership.

Landlords can explore the Academy here: https://landlordassociation.org.uk/tla-academy/

Those looking to join and access the full training and certification can register here: https://landlordassociation.org.uk/landlord-association-membership-uk/

TLA update

The Landlord Association is currently onboarding new service providers into its Trusted Partner Hub, a new initiative designed to support landlords, tenants, letting agents, and property managers with vetted, high-quality services. As one of the fastest growing landlord associations in the UK, TLA offers partners direct access to an engaged and active member base at the point of need. Service providers across legal, maintenance, insurance, finance, mortgages, tenant screening, and property services can register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/