UK private rental prices rise 3.5% in year to January – ONS

UK private rental prices rise 3.5% in year to January – ONS

UK Private Rental Prices Rise 4.0% in Year to December 2025 – ONS

The average UK monthly private rent increased by 4.0% to £1,368 in the 12 months to December 2025, according to the Office for National Statistics (ONS). This marks a slight deceleration from the 4.4% annual growth recorded in November 2025, reflecting a continued easing of rental inflation.

Regional disparities persisted, with Wales experiencing the highest annual rent growth at 5.7% (£822), followed by Northern Ireland (5.7%) and England (3.9%). Scotland saw the slowest increase at 2.8% (£1,018). Within England, the North East recorded the highest regional inflation at 7.9%, while London's growth remained the lowest at 2.1%.

The ONS noted that the Price Index of Private Rents (PIPR) measures price changes across the entire privately rented stock, including existing tenancies and new lets. However, data collection differences—particularly in Scotland and Northern Ireland—require caution when comparing cross-country estimates.

House price growth also showed mixed trends. The average UK house price rose by 2.5% to £271,000 in the 12 months to November 2025, up from 1.9% in October. Regional variations included a 4.5% increase in Scotland and a 2.2% rise in England, while London saw a 1.2% decline. Methodology improvements in the UK House Price Index (HPI) have reduced initial overestimation of new build prices, though revisions remain possible due to data limitations.

For investors and financial professionals, the data highlight a cooling rental market, with annual growth reaching its lowest level since May 2022. Regional dynamics, particularly in high-growth areas like the North East, may influence portfolio strategies. Meanwhile, house price stability in London contrasts with stronger gains in other regions, underscoring the need for localized analysis.

(21 January 2026).