Private rents in the UK rose by 6.7% to an average of £1,344 a month in the year to June 2025, according to the Office for National Statistics (ONS) figures.
This was down from 7.0% annual growth in May.
In England, average rents increased to £1,399, up 6.7%, while rents in Wales reached £804, rising 8.2%.
Scotland saw average rents climb 4.4% to £999.
In Northern Ireland, average rents went up 7.6% to £852 in the year to April 2025.
Looking at English regions, the North East recorded the highest annual rent inflation at 9.7%, while Yorkshire and the Humber had the lowest at 3.5%.
Average UK house prices grew by 3.9% to £269,000 in the year to May 2025, a higher growth rate than the 3.6% recorded in April.
England saw average house prices reach £290,000, up 3.4%.
Wales recorded an average of £210,000, up 5.1%.
Meanwhile, Scotland’s average price rose 6.4% to £192,000.
Reaction:
Nathan Emerson, CEO of Propertymark:
“In some respects, rising house prices shows as an indicator of growth in the general housing market and stability in some people’s finances as some banks are now cutting their mortgage rates to further stimulate the housing market.
“However, there is still more work to do to boost Britain’s housing market and make homeownership a realistic aspiration for those looking to step onto the property ladder for the first time.
“There are many reports suggesting that the Stamp Duty hikes commencing from April this year are having a negative effect as some people are paying between £6,000-£12,000 more in charges, and there are even calls for more flexible Stamp Duty payment options too.
“Though this tax was increased to help balance the UK’s finances, other reports suggest these increases are deterring aspiring homeowners. The UK Government should listen to those working in the industry who are noticing the negative consequences this policy is having.”
“Investors in the private rental market have been deterred from investing in this crucial housing market because of tax and regulatory changes over the last ten years, and now recent reports suggest that they have been deterred further by Stamp Duty increases on second homes.
“Britain needs a stable and thriving private rental market to provide choice to people who intend to put a roof over their heads.
“New legislation especially in both England and Scotland is adding more uncertainty to aspiring investors and ultimately raising rent prices in the long term, creating a myriad of unintended consequences.
“It is vital that the UK Government and the devolved administrations listen to those working in the lettings market to ensure that the private rental sector works better for everyone.”
Alex Upton, managing director, specialist mortgages & bridging at Hampshire Trust Bank:
“Yes, rents are still rising, but the pace has eased compared to last year. The mismatch between supply and demand remains the main driver, although there are early signs of the market starting to rebalance.
“Propertymark’s figures illustrate that shift, with an average of seven applicants now chasing each rental property, down from ten at the peak.
“The question is what comes next, particularly as the Renters’ Rights Bill moves closer. It is already prompting many landlords to reconsider their plans. Some have decided to exit the sector altogether, which only increases pressure on available stock.
“Others are exploring how to adapt, whether that means rebalancing their portfolios, investing in improvements or preparing for a more regulated environment.
“Part of this adjustment is about the market finding a more sustainable footing after several years of strong growth and affordability pressures. Some landlords have absorbed rising costs for longer than was practical.
“That is why we are seeing a gradual shift towards professional landlords with longer-term strategies and a focus on quality assets.
“For brokers, this is a period when clear advice matters. Landlords will need support to understand the practical implications of the Bill and to secure funding strategies that fit the changes ahead.
“Over time, the conversation has to move beyond rent levels. Increasing housing delivery is important, but it must be the right kind of supply. New homes need to meet the needs of tenants as well as buyers.
“A healthy housing market depends on a rental sector that remains accessible and affordable, and achieving that will require planning, targeted investment and a clear commitment to delivery.”
Darrell Walker, group sales director at Chetwood Bank for ModaMortgages and CHL Mortgages for Intermediaries:
“Another month of annual house price growth — and a return to monthly growth — underlines the resilience in the market, but it comes with a caveat.
“The figures show that while prices are edging upwards, momentum has slowed notably since March’s two-year high. It’s a reminder that although market sentiment remains broadly positive, it is still somewhat fragile.
“Much of this reflects how buyers and investors have become more selective, seeking opportunities that balance short-term value with long-term potential.
“It’s a clear sign that we’re still in a buyers’ market, shaped by elevated borrowing costs and ongoing uncertainty around the Bank of England’s next move.
“But not all buyers are sitting tight and waiting for the base rate to fall. The latest data demonstrates that prices are rising, and that’s because demand is still there, so the lending market must continue to step up.
“Bespoke, flexible solutions will be essential in helping brokers and their clients capitalise on emerging opportunities. By doing so, lenders can help the market move forward with confidence, regardless of what the Bank of England’s next decision may be.”
