Average monthly private rents in the UK rose by 7.0% to £1,339 in the 12 months to May 2025, according to the latest figures from the Office for National Statistics (ONS).
This marked a slight slowdown from the 7.4% annual increase recorded in April.
Regional data showed rent increases were highest in Wales, up 8.5% to £799, followed by England at 7.1% (£1,394), and Scotland at 4.5% (£999).
In Northern Ireland, where figures are reported quarterly, rents rose by 7.7% to £848 in the year to March 2025.
Within England, the North East saw the fastest rent growth at 9.7%, while Yorkshire and The Humber recorded the slowest rise at 3.7%.
Meanwhile, UK house price growth also eased.
Average prices increased by 3.5% to £265,000 in the 12 months to April 2025, down sharply from 7.0% annual growth in March.
House price rises varied by nation, with Scotland seeing the strongest growth at 5.8% (to £191,000), followed by Wales at 5.3% (£210,000), and England at 3.0% (£286,000).
Reaction:
Richard Harrison, head of mortgages at Atom bank:
“While house prices continue to grow, prospects for buyers may be improving. Rightmove has reported the number of homes for sale has hit its highest level in a decade, and that competition among vendors is leading to lower asking prices.
“However, it’s also leading to increased activity levels – Rightmove believes that May was the strongest month for agreed sales since March 2022.
“Mortgage rates are also a cause for optimism among buyers. The markets are expecting another couple of Base Rate reductions this year.
“Borrowers have already seen mortgage rates drop to levels last seen before the mini-Budget, with Moneyfacts finding that average fixed rates have fallen for four straight months.
“The key here is for lenders to ensure that all prospective buyers are able to access mortgage finance, and not just the select few.
“That means delivering flexible products which will deliver for those with imperfect credit ratings or small deposits.
“Home ownership must not be the sole preserve of those with access to the Bank of Mum and Dad or who have been fortunate enough to avoid payment challenges.”
Alex Upton, managing director – specialist mortgages and bridging, Hampshire Trust Bank:
“Rents continue to rise, and it is no surprise. Supply is still struggling to meet demand, and competition for well-located rental properties remains high.
“That pressure is unlikely to ease in the near term. New housing delivery may help, but even if government targets are met, it will take time for that stock to reach and influence the rental market.
“In the meantime, rental supply could contract further. Some landlords are reconsidering their position in light of the Renters’ Rights Bill and the likely cost of future retrofit requirements. It would not be surprising to see rental records continue to be broken this year.
“But where there is pressure, there is also change. Many professional landlords are already adjusting their strategy.
“We are seeing greater focus on resilient assets such as semi-commercial properties, HMOs and refurbishment projects aimed at delivering long-term value. The most effective landlords are positioning their portfolios with the future in mind.
“This is where brokers and lenders need to play their part. Landlords will require flexible, pragmatic funding to deliver those strategies.
“The market is shifting, and the brokers who understand those shifts and help clients act on them will be key to maintaining momentum.”
Nick Leeming, chairman of Jackson-Stops:
“April’s price growth reflects sustained buyer confidence, partly as a natural consequence of the surge in activity ahead of March’s Stamp Duty deadline.
“However, stubborn inflation is likely to prevent mortgage rates from falling as quickly as hoped. Buyers are hesitant amid mounting household financial pressures and wider economic uncertainty.
“On top of that, asking prices will need to reflect the current reality where supply is beginning to outweigh demand. That said, demand is expected to improve later this year as more interest rate cuts move onto the Bank of England’s radar.
“Across the Jackson-Stops network we’re seeing a strong commitment from sellers, with a significant increase in new listings in April compared to two years ago.
“Regionally, markets are marching to the beat of their own drum. In lifestyle-led hotspots such as Bury St. Edmunds, Cornwall, Exeter, Newmarket and Sevenoaks, May saw strong levels of both completions and new instructions.
“With the Government’s Spending Review putting housing front and centre, there’s hope that the supply shortfall will finally be addressed.
“But the real question is how long it will take for policy promises to translate into bricks and mortar. Until then, house prices are likely to head in one direction.”
