Rent growth accelerates as house price inflation slows – ONS

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.