The cost of renting in the UK has continued to climb, with average monthly private rents increasing by 7.4% to £1,335 in the 12 months to April 2025, according to the Office for National Statistics’ (ONS’) latest Private Rent and House Price Index.
While this marks a significant rise in rental prices, the annual growth rate has slightly eased compared to the 7.7% rise recorded in the 12 months to March 2025.
Across the UK, rent increases varied by nation.
England saw the highest average monthly rent at £1,390, up 7.5% year-on-year.
Wales experienced the sharpest rise in percentage terms, with average rents up 8.7% to £795.
In Scotland, average rents rose 5.1% to £999.
The most recent data available for Northern Ireland, covering the 12 months to February 2025, shows average rents rose by 7.8% to £843.
Within England, the North East recorded the fastest annual rental inflation at 9.4%, while Yorkshire and The Humber had the slowest increase at 4.0%.
Meanwhile, UK house prices also continued their upward trajectory.
Average house prices rose by 6.4% to £271,000 in the 12 months to March 2025, up from 5.5% growth in the year to February.
Breaking it down by country, England’s average house price climbed to £296,000 (a 6.7% increase), Wales reached £208,000 (up 3.6%), and Scotland saw a 4.6% rise to £186,000.
Reaction:
Nick Leeming, chairman of Jackson-Stops:
“The early months of 2025 have laid a strong foundation for the housing market, driven by rising demand and steady price growth. In March, buyers moved swiftly ahead of the impending Stamp Duty changes, fuelling a notable price uptick at the same time.
“Looking ahead, price growth is likely to be moderate, with regional variations continuing to shape local market dynamics. The true test for this year will be activity levels post-Stamp duty changes; sustained momentum could drive a buoyant summer, but without the same time pressure, price growth may soften.
“Encouragingly, across the Jackson-Stops network we are seeing robust activity levels, with demand outpacing supply in popular markets. In April alone, an average of five potential buyers were competing for every new listing, underscoring borrower’s continued commitment despite an everchanging economic situation.
“Now, the Government must reaffirm its pledge to deliver 1.5 million homes during this Parliament. Until this happens, the market cannot fully realign to meet the needs of both current and future buyers.”
Rachel Geddes, strategic lender relationship director at Mortgage Advice Bureau:
“The squeeze on renters persists, with the average UK monthly payment now reaching £1,335, marking a 7.4% annual increase. With average monthly mortgage repayments levelling out at £1,328, these latest figures highlight the long-term financial advantage of mortgage repayments over monthly rental costs.
“Despite this apparent benefit, the rising cost of living and affordability challenges leave many feeling that homeownership remains out of reach.
“However, the landscape is evolving. A growing number of lenders are using innovation to support homeownership, and coupled with the emergence of sub-4% interest rates, this has created a wealth of opportunities for borrowers.
“From zero-deposit mortgages to enhanced loan-to-income (LTI) lending, previous obstacles to entering the housing market have been removed. This newfound accessibility means more prospective buyers than ever before can access the property ladder.
“By leveraging the expertise and guidance of a mortgage broker, you’re likely to find yourself mortgage ready much sooner than you thought possible.”
Nathan Emerson, CEO of Propertymark:
“At a time when the wider economy remains a potential concern globally, it’s positive to see the UK housing market weather the storm well and deliver growth.
“It’s also positive to see continued momentum following what was a well-documented ‘Stamp Duty hike rush’ across England and Northern Ireland before thresholds changed from April 2025 onwards.
“As we head towards the traditionally busy summertime period for the housing sector, it’s positive news to see the Bank of England base rate stand in a much more consumer-friendly position than only twelve months ago, as the market finds balance.
“Over the coming months, we should see mortgage products become available that deliver more affordability and help boost consumer confidence.”
“Overwhelming demand within the rental sector continues to influence price increases for those who rent. We continue to witness, on average, around ten applicants for every property available to rent and this is a situation that has broadly remained stagnated across the last five years.
“It is imperative that rental supply rises to meet the challenges of demand, especially as the UK population is estimated to further grow to within the region of 70 million people across the next five years.
“It is important to have a clear-cut plan to meet future rental demand, especially when you consider the continued growth in the number of people renting across the last decade alone.”
Mark Harris, chief executive of mortgage broker SPF Private Clients:
“A jump in inflation was expected but the spike to 3.5% exceeded forecasts and is bad news as far as future interest rate movements are concerned, making it harder for the Bank of England to cut rates again in the near term.
“Swap rates have been on an upwards trajectory since the last Monetary Policy Committee meeting on 8th May when the voting revealed a three-way split among members.
“Swaps are likely to rise further in the short term as a result of the latest inflation figures.
“The most competitively-priced mortgage rates may now have a short shelf life as lenders react to the increase in cost of funds. Borrowers would be wise to seek advice from a whole-of-market broker and secure a rate in case pricing rises in the short term.
“Looking forward, in the longer term base rate is still expected to fall from its current position but the pace at which this happens may now be tempered.”
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts:
“The run-up to the end of the stamp duty holiday was very busy, and since then, the market has inevitably been quieter.
“However, the recent decision by the Bank of England to cut base rate to 4.25%, its lowest level in two years, has helped stimulate activity, with a noticeable uptick in viewings and offers.
“Well-priced homes are performing strongly and attracting interest from chain-free buyers. Some purchasers are missing out due to hesitation, while other properties are sitting unsold because they would benefit from a price adjustment.
“Overall, the market remains cautious – it’s still expensive to move, but demand is clearly there. Both flats and houses are selling.
“Homes in excellent condition are achieving the best prices and moving quickest, but there’s also appetite from buyers who want to take on a renovation project and make the property their own.”
Alex Upton, managing director – specialist mortgages and bridging at Hampshire Trust Bank:
“Rents continue to rise, and the reason why is clear. We still do not have enough homes to meet demand.
“Propertymark data shows an increase in available stock, but it is not enough to keep pace with tenant enquiries. That level of competition means pricing pressure remains firmly upward.
“There is a risk that the imbalance becomes even more severe in the months ahead. The Renters’ Rights Bill may prove to be the final straw for some smaller landlords, particularly those for whom property is not a full-time focus.
“Despite the uncertainty, many landlords are taking action. We are seeing more investors rebalancing their portfolios, focusing on properties that can deliver strong tenant appeal and long-term performance in a changing regulatory landscape.
“Brokers and lenders both have a role to play in supporting that shift. Landlords need access to funding that is flexible and commercially fair, with structures that allow them to transition out of underperforming assets without being penalised by restrictive terms or excessive exit charges. The market is evolving, and landlords will need the right support to adapt.”
