Average UK monthly private rents rose by 5.0% to £1,360 in the year to October 2025, down from 5.5% in the previous year, according to the latest Office for National Statistics (ONS) data.
England saw rents go up to £1,416 (5.0%), Wales to £817 (6.7%) and Scotland to £1,008 (3.4%).
In Northern Ireland, rents reached £866 (6.6%) for the 12 months to August 2025.
In England, annual rent inflation was highest in the North East at 8.9% and lowest in Yorkshire and The Humber at 3.8%.
Average UK house prices climbed by 2.6% to £272,000 in the year to September 2025, down from 3.1% in August 2025.
England’s average house price was £293,000 (2.0%), Wales £209,000 (2.7%) and Scotland £194,000 (5.3%).
Reaction
Louisa Sedgwick, managing director of mortgages at Paragon Bank:
“Rental inflation may be easing, but that doesn’t mean pressure in the private rented sector has disappeared. Many tenants still face high rents, and the underlying structural issue remains unchanged, with demand continuing to outstrip supply.
“Boosting the number of homes available to tenants is crucial and to achieve that means creating an environment where investment in the sector is not only viable but encouraged. While positive for the sector, the recent progression of the Renters’ Rights Act brings into focus the need to strike the right balance between tenant protections and the long-term sustainability of the sector.
“As we look ahead to the Budget, this is an opportunity for Government to demonstrate that it values the role of responsible landlords in providing the homes that millions rely on. A stable regulatory and economic framework is critical if we are to reverse the ongoing imbalance between rental demand and supply.”
Nathan Emerson, CEO of Propertymark:
“It is encouraging to see equity rising again as this signals a return of buyer confidence and renewed momentum in the market.
“However, while increasing values can reflect underlying strength, they also underscore the ongoing challenges around affordability and the limited supply of homes.
“To translate this momentum into long-term stability, it would be much welcomed to see the UK Government work closely with the industry to support sustainable growth, ensuring that more people can realistically access home ownership, rather than simply driving prices higher.
“An increase in rental prices highlights the continuing pressures faced by the private rented sector.
“While rising rents may reflect strong demand and limited supply, they also intensify the affordability challenges many tenants are already experiencing.
“Letting agents and landlords will need to navigate these conditions carefully, ensuring any increases remain fair and sustainable.
“Policymakers must recognise that persistent rental inflation points to a system struggling to meet demand and respond with measures that encourage more homes into the sector rather than driving landlords out.”
Alex Upton, managing director, specialist mortgages & bridging finance at HTB:
“While rents continue to rise, the rate of growth has been slowing for some time. Even so, the conditions for further increases remain.
“Propertymark’s latest data shows demand from tenants is still significantly outpacing supply, and that level of competition is likely to keep rents under pressure. It will be important to see how that dynamic evolves now that the Renters’ Rights Act is on the statute book.
“The Renter’ Rights Act is already prompting landlords to reassess their position. Some are choosing to exit the market, while others are adapting by restructuring portfolios, exploring incorporation, or planning upgrades to meet future requirements. This shift is driving greater demand for longer-term thinking and practical guidance.
“All eyes are now on next week’s Budget. Speculation around further tax changes, including the potential introduction of National Insurance on rental income, is adding to uncertainty.
“This would have a particular impact on landlords holding property in their own name rather than through a company structure.
“The Chancellor must strike the right balance. Raising standards across the rental sector is important, but that cannot come at the expense of long-term capacity.
“Without a meaningful increase in housebuilding, home ownership will remain out of reach for many, and the rental sector will need to carry more of the weight.”
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts:
“Everyone in the property world has been laser-focused on the Budget – it’s felt like a marathon getting to this point. And while the wait hasn’t brought the market to a standstill, it has absolutely created hesitation. Over the past few weeks we’ve seen noticeably fewer market appraisals, simply because sellers want to know what is coming before making a move.
“That pause now feeds directly into reduced stock for the New Year, which is when the market normally builds momentum. The real message right now is that the Budget hasn’t just shaped sentiment – it has shaped supply.”
Mark Harris, chief executive of mortgage broker SPF Private Clients:
“With inflation easing to 3.6% in October, this suggests prices have peaked and are now on a downwards trend. Swap rates, which underpin the pricing of mortgage rates, and have been rising in recent days, were little changed this morning as inflation moved in the expected direction.
“However, the inflation figures have strengthened the likelihood of an interest rate cut from 4% at the next meeting of the Bank of England in December, which will be welcome news for borrowers.
“With activity in the housing market subdued as buyers and sellers wait to see what the budget holds, lenders are launching some really competitive sub-4% mortgage rates in an effort to boost business before the end of the year. It is worth locking into one of these cheaper fixed-rate mortgages if you are due to remortgage in the next six months as there is still quite a bit of volatility, particularly with regard to the forthcoming budget. If, by the time you come to take out your mortgage, rates have fallen, you can switch to a cheaper rate but if rates rise, you will be glad you fixed when you had the opportunity.”
Jason Tebb, President of OnTheMarket, comments on September UK HPI:
“Property values continued to rise on an annual basis in September, with the average price £7,000 higher than a year ago. While the Land Registry figures are dated, they suggest that there is some caution and price sensitivity in the market, with annual growth slower than the 3.1 per cent recorded in the year to August.
“With inflation dipping to 3.6% in the year to October, this is welcome news as it provides stability for consumers. It might also help convince the Bank of England to reduce interest rates again at the next meeting in December.
“This is important for the housing market as the five base-rate reductions in the past 16 months have given a real boost to buyer and seller confidence and activity, although affordability remains a challenge and is keeping property prices in check to a degree.
“With the Budget imminent, we urge policymakers to focus on stability, assisting confidence and supporting the housing market, which is so vital to the wider economy.”
Richard Donnell, executive director of research at Zoopla:
“The last house price index data shows a slowdown in house price and rental inflation as affordability pressures bite. This slowdown is expected to continue into 2026. More first tome buyers and lower migration for work and study is easing the pressure on rents, with rents for new lets rising at their lowest level for 4 years.
“Pre-Budget jitters are hitting housing market activity at the start of the home buying process. Demand and sales agreed for homes priced over £500,000 are down by up to 9% on this time last year as buyers pause home buying decisions. There are 350,000 homes where the sale has been agreed moving towards completion and some buyers of expensive homes will be nervous about possible changes to council tax for their new purchases.
“All eyes are now on next week’s Budget – if the housing market gets off lightly then we expect a rebound in demand and activity, but if the impact on consumer confidence is greater, then we could have a sluggish start to 2026.”
Gareth Lewis, deputy CEO of specialist lender MT Finance:
“Property prices may have stagnated slightly but there are still people trying to buy. One of the challenges they are facing is that it is taking forever for a transaction to go through – whether that is down to lack of commitment or with the budget round the corner, it is hard to tell.
“The key point is that there is a crying need for stimulus in the property market so that it will start functioning properly. Interest rates have come down and settled and mortgage rates are probably where they need to be, but still there is nothing to encourage first-time buyers to get on the ladder or second-steppers and beyond to move up it. Properties are on the market for extended periods of time and even if values were to decrease to make them more affordable, it is unlikely to be enough.
“We need a real call to action. Stamp duty is the biggest expense for most when moving house and reducing or reforming this would create an energy and buzz, saving people money and result in them wanting to transact. The Government should think of it this way: the more people who transact, the more stamp duty it will generate and the more it will drive revenue for the Treasury.”
Steve Griffiths, commercial director for retail mortgages at Shawbrook:
“House prices rose YoY in September, in line with the usual back to school season, as people return from their summer holidays and restart property searches. This has likely also been helped by reducing Swap rates which in turn has led to lenders lowering mortgage rates.
“Looking ahead, the economic event on everyone’s lips is the Autumn Budget. Whilst potential tax changes have taken centre stage in the media over the past few weeks, there has been some speculation regarding changes to stamp duty or wider property tax reforms, which may explain the slight MoM dip. Whilst nothing is confirmed, aspiring homebuyers should still keep an eye out for any announcements next week and factor them into their plans. Speaking to a broker can help outline next steps and potential pathways to homeownership.”
