UK rental growth accelerated in July while house price inflation slowed for a second consecutive month, Office for National Statistics (ONS) data shows.
Average monthly private rents rose 3.7% in the 12 months to July to £1,393, up from annual growth of 3.3% in June.
The increase was the highest annual rate of rent inflation since December 2025 and was mainly driven by an acceleration in London, where annual growth rose from 2.2% to 3%.
Average rents reached £1,451 in England after rising 3.8% year-on-year, while Wales recorded a 4.5% increase to £843 and Scotland a 1.7% rise to £1,016.
In Northern Ireland, average rents rose 2.3% to £875 in the 12 months to May 2026 – the lowest annual rate of rental inflation recorded there in more than five years.
The North East continued to record the strongest rental growth among English regions at 6.3%, while the South East had the lowest at 2.9%.
London remained the most expensive region to rent, with an average monthly cost of £2,317, compared with £783 in the North East.
The rental figures contrasted with a slowdown in the sales market, where average UK house prices increased by 2% in the 12 months to June to £272,000. Annual growth was down from 3% in May.
The ONS attributed the slowdown to weaker price growth in early summer this year compared with the same period in 2025, when prices rebounded following changes to stamp duty in England and Northern Ireland.
Average UK prices rose just 0.1% between May and June, compared with a 1% increase over the same period last year.
House prices increased by 1.8% annually to £293,000 in England and by the same rate to £213,000 in Wales. Scotland recorded growth of 2.3%, taking its average to £195,000.
The North West had the strongest annual house price growth among English regions at 4.7%.
London remained the weakest market, with average prices falling 2.5% year-on-year. It marked the tenth consecutive month of annual house price declines in the capital.
Northern Ireland recorded considerably stronger growth in house prices, with average prices rising 9.2% annually to £202,000 in the second quarter of 2026.
Comments (4)
Why can’t the government see that the restrictions and tax put into private landlords and second home owners is completely backfiring. Demand for rental property is increasing and yet there are less properties available as private landlords just don’t want to be involved any more. Get rid of additional SDLT, allow mortgage payments to be tax deductible against rental income, encourage private landlords back into the business and increase supply of property available. Then rents will come down to sensible levels. People in rented can’t afford to save enough for a deposit to buy at the moment.
Because the Govt is Labour LOL
This one is, but the changes were mainly brought in by the last lot who were Tories…
below all labour
No More Section 21 Evictions: Landlords can no longer evict tenants without a valid legal reason. Evictions now require a formal Section 8 notice grounded in specific legal reasons, such as selling the property or moving in family members.End of Fixed-Term Tenancies: All new and existing tenancies have been converted into rolling, periodic tenancies. Tenants can exit a contract at any point by giving a standard two-month notice period.Banning of Rental Bidding Wars: Landlords and letting agents are legally prohibited from inviting, encouraging, or accepting offers that exceed the advertised rental price.Strict Rent Increase Limits: Rent can only be raised once per calendar year using a formal Section 13 notice, which requires two months’ notice. Rent review clauses in existing contracts are entirely void.Anti-Discrimination Caps: It is now illegal for landlords to issue blanket bans against prospective tenants simply because they have children or receive welfare benefits. Upfront rent payments are also capped at one month