New data suggest calmer conditions ahead for renters and buyers
The pace of rent inflation in the UK has slowed for the eighth consecutive month, according to the Office for National Statistics (ONS). Average monthly private rents increased by 5.7% in the 12 months to August 2025, down from 5.9% in July. This brought the average rent to £1,348, representing an annual rise of £73.
Rents increased across all four nations of the UK but at different rates:
- In England, average rent rose by 5.8% to £1,403, the ninth month of easing growth.
- In Wales, rents climbed by 7.8% to £811, below the peak annual rise recorded in late 2023.
- In Scotland, rents increased by 3.5% to £1,002, the lowest annual rise in more than three years.
- In Northern Ireland, the average rent reached £860 in June 2025, 7.2% higher than a year earlier.
Regional contrasts in England
The ONS data showed sharp differences across English regions. The North East reported the fastest rent growth at 9.2%, while Yorkshire and The Humber recorded the lowest at 3.4%. London’s annual inflation slowed to 5.7%, its ninth consecutive decline, though the capital remained the most expensive region with an average rent of £2,253.
UK house price growth slows
The housing market followed a similar trend. The average UK house price rose by 2.8% in the 12 months to July 2025, reaching £270,000. This was down from the 3.6% annual growth recorded in June.
- In England, house prices rose 2.7% to £292,000.
- In Wales, they increased by 2.0% to £209,000.
- In Scotland, prices grew by 3.3% to £192,000.
- In Northern Ireland, the average price was £185,000 in Q2 2025, up 5.5% from the same quarter in 2024.
House price trends
The North East of England recorded the strongest house price inflation at 7.9%, while London saw the lowest, at 0.7%.
An analysis from property website Rightmove noted that the first annual price drop since January 2024 is the culmination of several months of competitive pricing by new sellers over the summer.
Market analysts suggest that the cooling market is a result of increased housing supply and stabilising mortgage rates. “Rental market conditions are starting to normalise,” said Richard Donnell, executive director at Zoopla, adding that “lower migration and better mortgage availability for first-time buyers are easing the scale of the competition for rented homes.”
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