Average UK private rents rose by 5.5% in the 12 months to September 2025, reaching £1,354 a month, according to the latest figures from the Office for National Statistics (ONS).
The annual rate of growth eased slightly from 5.7% in the previous month, continuing a gradual slowdown seen since early summer.
Across the nations, England recorded an average rent of £1,410 – up 5.5% on the year – while rents in Wales climbed 7.1% to £815.
In Scotland, average monthly rents increased 3.4% to £1,004, and in Northern Ireland, where data is reported separately, rents rose 7.1% to £865 in the 12 months to July 2025.
Within England, the North East saw the strongest annual rent inflation at 9.1%, while Yorkshire and The Humber recorded the lowest at 3.8%.
The ONS said the moderation in growth reflects a cooling from the peak increases seen through 2024, although affordability pressures remain high across much of the UK.
House price growth also slowed slightly over the same period.
Average UK house prices increased by 3.0% in the 12 months to August 2025, down from 3.2% in July, taking the typical property value to £273,000.
In England, the average house price reached £296,000 – up 2.9% annually – while Wales saw a 2.0% rise to £211,000.
Scotland recorded the strongest price growth at 4.0%, taking the average price to £194,000.
Reaction:
Nathan Emerson, CEO of Propertymark:
“With the average income needed to rent a home across the UK now reaching £45,420 and £1,514 being the typical rental price, it is clear that there are challenges which need addressing, in terms of simply not having enough supply of rental properties available to meet current demand levels.
“We are about to witness some of the biggest evolutions in over thirty years within the rental sector, with the Renters’ Rights Bill across England and the Housing (Scotland) Bill. Both will make fundamental changes to how landlords operate and are aimed at strengthening consumer rights concerning standards.
“Across the forthcoming decade, it is essential that all eyes are turned to encouraging long-term investment in the rental sector to keep up with increased demand and population growth.”
Chris Storey, chief commercial officer at Atom bank:
“The rumours about wholesale changes to the Stamp Duty regime – and potentially its complete replacement with a new form of property tax – have understandably caused some potential buyers to put their plans on hold. Why push on with a deal today when holding out for a month or two could mean they save thousands?
“Reform that makes life easier for aspiring buyers would be welcome, so long as it does not supercharge house price growth. The housing ladder only works if would-be homeowners can get onto it.
“The upcoming Budget represents a great opportunity for the Government. Housing production looks to be significantly down on the promised 1.5 million new homes during the course of this Parliament, and until we dramatically improve that production rate there will remain sharp upward pressure on prices.
“In the meantime, it’s vital that lenders go further in supporting borrowers who are underserved by mainstream lenders. A broader choice of products with higher LTVs and a more forgiving attitude to credit blips will mean that rising house prices don’t kill off ownership dreams.”
Roger Morris, group distribution director at Chetwood Bank for ModaMortgages and CHL Mortgages for Intermediaries:
“Another month of annual house price growth underlines the resilience of the market, but it comes with a clear caveat. Prices are edging upwards, but momentum has slowed month on month. It’s a reminder that, while the last year has been largely positive for the market, uncertainty has once again seeped in.
“Much of this reflects the looming spectre of the Autumn Budget, which is expected to introduce policies that would directly impact landlords and their investments. Changes to the tax landscape – whether through Capital Gains Tax, Stamp Duty, or National Insurance on rental income – would be particularly significant. Exact details remain scarce, so until the Budget is delivered, this uncertainty is likely to continue dampening market sentiment.
“As a lender, therefore, we recognise that the onus falls on us and the rest of the industry to help brokers and their clients best navigate the coming weeks. Bespoke, flexible solutions will be essential to helping brokers and clients capitalise on any opportunities that emerge pre- or post-Budget. Demand is likely to rise once the picture becomes clearer, and lenders will need to adapt quickly to help the market move forward with confidence.”
Paresh Raja, CEO of Market Financial Solutions:
“The latest HPI figures paint a familiar picture of a market showing resilience in the face of wider uncertainty. Annual growth remains positive, which is indicative of the underlying strength and long-term appeal of UK property. However, the month-on-month slowdown reflects how speculation surrounding the Autumn Budget is dampening sentiment.
“Many investors and homebuyers are understandably pausing for clarity before making their next move. They’ve faced several years of headwinds, and the policies being discussed ahead of the Budget would add another layer of complexity. While the government’s fiscal shortfall does need attention, these proposals come at a time when the market needs stability and steady investment – as such, we could see further growth curbed in the short term post-Budget as a result of the proposed measures.
“It’s important to remember, however, that the property market is cyclical, and that periods of uncertainty regularly emerge. For investors and homebuyers, maintaining perspective will be key in the coming weeks, as bricks and mortar remains a fundamentally resilient asset class despite policy changes in Whitehall. For lenders, we have a responsibility to work even more closely with brokers to ensure their clients can continue to act with confidence and adaptability, regardless of the policies announced at the end of November.”
