Private rent growth across the UK eased in July 2025, while house price inflation gathered pace, according to the latest figures from the Office for National Statistics (ONS).
Average monthly private rents rose by 5.9% in the 12 months to July 2025, reaching £1,343.
This represented a slowdown from the 6.7% annual increase recorded in June.
Across the nations, average rents climbed to £1,398 in England, up 6.0% year on year, £807 in Wales, an increase of 7.9%, and £999 in Scotland, where annual growth was 3.6%. In Northern Ireland, rents rose by 7.4% in the 12 months to May, reaching £855.
Regional disparities within England remained stark.
The North East recorded the strongest annual rent inflation at 8.9%, while Yorkshire and The Humber registered the lowest at 3.5%.
Meanwhile, UK house prices posted stronger gains in June.
Average prices increased by 3.7% over the year, taking the typical property value to £269,000.
This was a marked acceleration from the 2.7% growth rate recorded in May.
By country, average house prices reached £291,000 in England, up 3.3% annually. In Wales, prices rose 2.6% to £210,000, while in Scotland, growth was stronger at 5.9%, lifting the average to £192,000.
Reaction:
Nathan Emerson, CEO of Propertymark:
“With the UK Government and the Scottish Government edging towards the final stages of legislating the Renters’ Rights Bill and the Housing (Scotland) Bill respectively, the rental market is about to undergo fundamental changes aimed at strengthening consumer protection.
“We currently stand at a point where, on average, across the UK there are typically six people making an application for every rental property available. This represents an extremely unhealthy situation where long-term investment is urgently needed to keep pace with growing demand across nearly all regions.”
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts:
“We have been busier than expected in our offices, with strong agreed sales and very few fall-throughs. Realistic pricing from the outset is driving momentum, and well-presented homes – especially family houses in good school catchments – are attracting committed buyers.
“At the top end, stamp duty is a constant talking point; while the high cost is slowing some decisions, the desire for more space is still pushing people to commit. A bigger influence has been sellers looking to offload rental properties before buying to minimise their stamp duty bill, which will inevitably affect the lettings market.
“What’s surprised us most is the first-time buyer flat market – it slowed after the stamp duty holiday ended, but has now rebounded more strongly than we’ve seen in years. That said, there are still well-priced homes sitting unsold, often because buyers are holding back.
“If you’re waiting for prices to drop, you might be right – but the property you want could be withdrawn, nothing suitable may come up, or prices could rebound far faster than they fall. If you see something you like but aren’t sure on the price, call the agent to gauge the seller’s position before you view – far better than hesitating and watching someone else buy it.”
Nick Leeming, chairman of Jackson-Stops:
“An uplift in house prices reflects a quiet but steady confidence in the market, as we continue to move further away from the turbulence of recent economic events.
“Buyers are increasingly focused on the tangible realities of today’s housing landscape, rather than being distracted by speculation or uncertainty. There remains a healthy level of housing stock available, yet competition for well-priced, quality homes is driving swift sales from committed buyers.
“While rumoured changes to Stamp Duty suggest the Treasury is open to bold, out-of-the-box thinking to improve market dynamics, these ideas remain speculative for now. Until concrete action is taken, they are simply words, not policy. Our recent research revealed that of the 15% of over 55s who plan to downsize would do so within the next year if stamp duty were removed or reduced on their onward purchase.
“Encouragingly, the recent cut to the base rate to 4% has brought fixed-rate mortgages comfortably below 5%, restoring buyer affordability to levels not seen since 2022. This is a welcome development, especially as millions of homeowners approach the end of their fixed-rate deals this year and are considering what to do next.”
Tony Hall, head of business development at Saffron for Intermediaries:
“Today’s figures show renewed momentum in the housing market, with steady price growth supported by increased buyer confidence and a wider choice of mortgage products. Recent criteria changes from lenders are giving borrowers greater flexibility, which is helping many to move ahead with plans they may have paused earlier in the year. A higher number of homes on the market is also sustaining activity and preventing sharp rises in affordability pressures.
“Earlier this month, the Bank of England reduced the base rate to 4% – the lowest level since March 2023 – and this move is expected to provide further support to affordability in the months ahead. As we move into the second half of the year, these factors point to a positive outlook for buyers and brokers alike.”
Alex Upton, managing director – specialist mortgages and bridging finance, Hampshire Trust Bank:
“Rents are still edging upwards, but there are signs that tenant demand has eased slightly over the summer. Propertymark’s latest Housing Insight report shows new tenant registrations in June fell to their lowest level in years, and the supply-demand imbalance has softened. There are now six applicants per property on average, compared to nearly ten at points last year.
Even so, a modest slowdown doesn’t change the underlying picture. We are still significantly short of the rental stock needed to meet demand, and that structural gap will keep upward pressure on rents for the foreseeable future.
That’s the key message for brokers and landlords. While the market may be adjusting at the margins, the long-term fundamentals haven’t shifted. Professional landlords will continue to invest in quality assets, and strategic portfolio planning remains essential. Securing the right funding and preparing for future regulation will be critical in navigating what comes next.
Over time, it’s also vital that we focus on the right kind of supply. A resilient rental market depends not just on volume, but on quality, accessibility and long-term affordability. Achieving that requires joined-up thinking, targeted investment and policy that supports both tenants and landlords.”
Chris Storey, chief commercial officer, Atom bank
“House prices are continuing to bounce back from the temporary lull that followed the end of the stamp duty holiday, though the rate of growth is far more modest than at the start of the year.
“The most recent data from Rightmove shows that asking prices have dropped of late, with the number of properties for sale jumping by 10% on the same period of last year. This competition is pushing sellers to be realistic with their pricing, opening the door for a deal to be done. It’s translating into higher activity levels, with the number of agreed sales up by 8% compared with this time last year, while lower mortgage rates are playing their part too. Moneyfacts analysis shows that average two-year fixed rates have dropped to below the average rates available on five-year terms, for the first time since September 2022, suggesting we are finally putting the effects of the notorious mini-Budget behind us. The combination of wider property choice and lower mortgage rates will help make some buyers make the jump onto or up the housing ladder.
“However, a cohort of would-be buyers are being left behind. Analysis of historic first-time buyer data by the BSA suggested that since 2006 around 2.2 million first-time buyers have failed to purchase their first home. These buyers are being handicapped by too few options for small deposits, overly prescriptive lending limits and a blinkered approach to historic credit issues. As an industry we need to not just focus on house price fluctuations, but on fairness too.”
