The latest figures from the Office for National Statistics (ONS) show UK rental growth accelerated in July, with average private rents rising 3.7% year-on-year to £1,393, the fastest annual increase since December 2025. Growth picked up particularly in London, while the North East recorded the highest rental inflation among English regions at 6.3%.
By contrast, ONS data showed annual UK house price growth slowed for a second consecutive month, falling from 3% in May to 2% in June, with the average property valued at £272,000. The slowdown reflected weaker price growth this summer compared with last year, while London recorded a tenth consecutive month of annual house price falls.
Here’s how the industry reacted to the latest figures.
Nathan Emerson, CEO at Propertymark:
“The UK’s housing market is central to the country’s economic engine, so any fall in house prices can naturally create a sense of nervousness among sellers, especially when looking at the figures year on year. While short-term fluctuations are a normal part of the property market, they can influence confidence and lead some homeowners to delay decisions until there is greater certainty about the direction of the market.
“It will, however, be a case of closely watching how matters progress over the coming months, as significant uncertainty remains, particularly when considering the wider global economy.
“Across all nations, housing remains a key political focus, and there are significant challenges still to overcome. We recently witnessed Andy Burnham enter Downing Street, specifically highlighting housing as an issue that must remain at the heart of the UK government’s attention moving forward.
“Although rental prices continue to increase, the overall rate of rental inflation has slowed over the past 12 months. However, with an average of seven people registering their interest in each available property at many letting agency branches, there remains intense pressure on the supply of suitable rental homes.
“Across all nations, there is a continued need for substantial long-term investment in housing to keep pace with real-world demand, particularly as the population continues to grow. However, for rental stock levels to increase, many factors must work in harmony to help deliver sustainable new homes in the regions where they are needed and at the right time.”
Tom Bill, head of UK residential research at Knight Frank:
“Rents are being pushed higher as the unintended consequences of the Renters’ Rights Act play out. Some landlords have left the sector, which has reduced supply, while others have increased asking rents to reflect the additional financial risks they face. The consequences may be unintended, but they were not unexpected, and a policy designed to tip the balance of power towards tenants is adding to the financial pressures they already endure.”
“House price growth is slowing to zero as borrowing costs remain high and uncertainty surrounds which taxes will be increased in the autumn Budget. Weakness in the labour market means the Bank of England is unlikely to hike rates any time soon but almost six months into the Middle East conflict mortgage rates are still around a percentage point higher than they were before it started.
“A seasonal bounce in activity may be more detectable in autumn than it was in spring as rates stabilise, but that will also depend on the extent of any pre-Budget speculation and overall we expect prices to be largely flat this year.”
Iain McKenzie, CEO of The Guild of Property Professionals:
“The slowdown in property prices reflects a market facing a number of competing pressures. Inflation has edged higher, the Bank Rate remains at 3.75%, and affordability continues to constrain many buyers. The summer market has also been quieter than usual, with more homes coming onto the market and buyers taking longer to make decisions.
“However, it would be wrong to interpret softer price growth as a lack of resilience. Mortgage approvals increased in June, mortgage product availability has continued to improve, and major lenders have begun reducing rates on residential mortgages again. Property transactions also stabilised, with activity in the first half of the year remaining ahead of 2024 and only modestly below last year’s levels.
“The picture is increasingly one of a price-sensitive and highly localised market. With supply close to a 12-year high for this time of year, buyers have more choice and sellers face greater competition. Properties that are accurately priced, well-presented and aligned with local demand are still attracting interest and achieving sales.
“Looking ahead to the autumn, we expect activity to pick up as the usual seasonal bounce returns, provided mortgage rates continue to ease and economic uncertainty does not intensify. Price growth is likely to remain modest for the rest of the year, with the market increasingly driven by affordability and local conditions rather than broad national momentum.
“For buyers and sellers alike, the key message is that the market remains active, but strategy matters more than ever. Understanding the realities of the local market, and getting the pricing, presentation and timing right, will be crucial to making a successful move.”
Nicky Stevenson, managing director of Fine & Country:
“Annual house price growth slowing may grab the headlines, but this does not point to a market in retreat. Instead, it reflects the growing influence of buyer affordability, increased choice and a more cautious economic backdrop.
“For buyers, stock levels are close to a 12-year high for this point in the year, giving them more choice and greater room to negotiate. At the same time, recent reductions in mortgage rates from a few major lenders should provide a welcome boost to buying power.
“For sellers, the message is slightly different. The days of simply putting a property on the market and expecting strong competition are behind us, at least for now. With homes taking longer to sell and more properties competing for buyers’ attention, realistic pricing is becoming increasingly important.
“What is encouraging, however, is that transactions have stabilised and mortgage approvals have improved, suggesting that there remains a solid underlying appetite to move. Buyers have not disappeared, they are simply more selective.
“As we move towards the autumn market, we expect activity to strengthen, but price growth is likely to remain modest. In many ways, that could be healthy for the market: a period of greater stability, where buyers have choice, sellers have realistic expectations, and transactions can continue without prices racing ahead of household finances.”
Nick Leeming, chairman of Jackson-Stops:
“Today’s figures point to a market holding broadly steady. Buyers are still moving, but tighter affordability means price, quality and value are determining which homes secure attention. This is a market that is increasingly price-sensitive.
“June brought the start of a political transition, with Andy Burnham emerging as the likely next prime minister and prompting renewed debate about the incoming government’s approach to property taxation. While Burnham has since ruled out changes to stamp duty at the next Budget, the tax remains a significant barrier to movement. Our own research found that removing these costs could bring more than 300,000 owner-occupied homes onto the market across England within less than a year. June also offered buyers only a brief period of greater mortgage-rate stability, but borrowing costs still remained materially higher than at the beginning of the year.
“Buyers now have more choice, more time and greater negotiating power. Sellers can still attract committed purchasers, but they must engage with the market as it is, not as they might wish it to be. That means listening to good advice from local agents and pricing with confidence and realism from day one. Realistic pricing is not about leaving value on the table; it is how sellers create competition for it.”
