Average UK private rents continued to rise strongly in the year to August 2025, climbing 5.7% to £1,348 a month, according to the latest figures from the Office for National Statistics (ONS).
The pace of annual growth has eased slightly from 5.9% recorded in the year to July, but still points to significant pressure on tenants.
England saw average rents reach £1,403, up 5.8% year on year, while rents in Wales climbed 7.8% to £811 and Scotland recorded a 3.5% increase to £1,002.
In Northern Ireland, where data is published less frequently, average rents rose 7.2% to £860 in the 12 months to June.
Regional differences remained pronounced. The North East of England registered the highest annual inflation at 9.2%, while Yorkshire and The Humber recorded the lowest at 3.4%.
House price growth also softened.
Average UK house prices rose 2.8% to £270,000 in the 12 months to July 2025, down from 3.6% in June.
England recorded a 2.7% rise to £292,000, Wales saw prices edge up 2.0% to £209,000, and Scotland posted a 3.3% increase to £192,000.
Reaction:
Nathan Emerson, CEO of Propertymark:
“Now that politicians throughout the UK have returned from the summer recess, both the Scottish Parliament and Westminster will progress the Housing (Scotland) Bill and the Renters’ Rights Bill respectively. While both pieces of legislation represent fundamental changes to the rental markets of Scotland and England, the ongoing process of fine-tuning new legislation has the potential to create an environment of uncertainty for many landlords and renters.
“Demand is still outstripping supply considerably, which is why we cannot afford to see investors consider selling up and causing any further reduction in the supply of rental properties.
“With a population expected to exceed 70 million people by the end of the decade, there needs to be provision to enhance the flow of sustainable properties of all types and tenures into the system, backed up by data-driven insight and supporting infrastructure on a regional basis.”
Alex Upton, managing director – specialist mortgages and bridging finance at Hampshire Trust Bank:
“Balancing the rental market must be a top priority for Steve Reed as he steps into the role of Housing Secretary. The latest Propertymark data shows tenant demand rising sharply, far outpacing any increase in available rental stock. That imbalance is keeping rents under pressure, and until we see meaningful progress on supply, any short-term easing is likely to be temporary.
“A big part of what happens next will hinge on the Renters’ Rights Bill. The timing and detail are still to be confirmed, but the direction of travel is clear. Landlords are already adapting, upgrading properties, restructuring portfolios, and making long-term decisions about where they want to be.
“This is a pivotal moment for brokers. Professional landlords who see the long-term value in property will need funding partners who understand the landscape and can help them reposition with confidence. That means clear criteria, open communication, and structured lending solutions that reflect the realities of the market.
“The broker’s role has never been more important. By staying close to lender appetite, structuring the right deals, and supporting landlords through change, brokers can be the trusted partner every investor needs. Those who lean in now will be the ones shaping what comes next.”
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts:
“House-price growth is showing further signs of flattening, which may reinforce the current market caution leading to more sellers adjusting their expectations as to what they can achieve for their home.
“A sudden drop in prices is not expected as many people still have low mortgage rates and in our area in particular, plenty of equity in their homes and stable jobs. Well-priced, well-located homes continue to perform.
“Affordability remains the brake on the housing market. Never in my 25 years in the industry have I had so many conversations with people about the cost of stamp duty. The high cost of moving is prohibiting home moves that people want to make, but don’t feel confident enough to do so and is leading to stagnation in the market in certain areas.”
Mark Harris, chief executive of mortgage broker SPF Private Clients:
“With inflation holding steady in July, could it have finally peaked? The rate setters at the Bank of England may decide to monitor the situation a little longer before committing to the next rate reduction, with tomorrow’s meeting perhaps coming too soon for another cut.
“Further rate reductions are expected in due course but the Bank may want to see evidence that inflation is better under control before committing.
“Easing of mortgage criteria by lenders continues with borrowers in theory able to take on bigger mortgages and afford the houses they desire. Lenders have plenty of liquidity and are keen to lend with mortgage rates fairly steady on the whole, although some lenders are tweaking rates upwards.”
Jason Tebb, president of OnTheMarket:
“Although historic, the Land Registry data shows house values continued to rise on an annual basis in July, with the average property price £8,000 higher than a year ago. However, affordability continues to be a challenge and is keeping prices in check to an extent as buyers take advantage of their strong negotiating position.
“The market is demonstrating remarkable resilience, assisted by five interest rate reductions in the past year and the expectation of more to come. However, with inflation remaining stubbornly high at 3.8%, there will be concerns that the chances of the next rate cut coming this month have reduced.”
Lee Williams, national sales manager at Saffron for Intermediaries:
“Today’s figures show a continued momentum in the market, with steady price growth supported by the Bank of England’s base rate cut last month. This has helped boost buyer confidence and expand mortgage options. While reports suggest Rachel Reeves may replace stamp duty and council tax with an annual property tax, this has not yet significantly impacted the market.
“This month saw new leadership as a new Housing Minister was appointed, issuing a ‘call to arms’ to ‘build, baby, build’. The industry will be looking for tangible measures to help meet the government’s 1.5 million home target. With the Budget set for late November, lenders are gradually increasing mortgage rates, prompting some buyers to act quickly and making advice from a qualified adviser increasingly important.”
Chris Storey, chief commercial officer at Atom bank:
“These ONS figures follow data from Halifax, which suggest yet another record high, and highlight the scale of the task facing Steve Reed, the new Housing Secretary. We don’t have enough homes, we don’t build enough new ones to meet demand, and house prices just keep rising.
“Addressing the imbalance has to be at the top of the to-do list for the new Housing Secretary, particularly given the mediocre rates of housebuilding this year. Pledges and targets are all well and good, but they don’t mean much to the aspiring buyers watching house price growth push homeownership out of reach.
“There’s also the small matter of the Budget on the horizon, with continued speculation about a complete overhaul of property taxes, including the scrapping of stamp duty. We saw earlier this year the impact the stamp duty regime has on transaction levels, as buyers rushed to beat the holiday deadline, driving up prices sharply in the process. While making things easier for first-time buyers would be welcome, there is a balance to be found so that it does not end up pushing prices up to even less affordable levels.”
