"Overwhelming demand within the rental sector continues to influence price increases for those who rent."
- Nathan Emerson - Propertymark
The latest data from the Office for National Statistics (ONS) shows that average private rents across the UK continued to outpace house price inflation in the year to April 2025, although the annual rate of rental growth has slowed slightly.
UK-wide, average private rents rose by 7.4% to £1,335 per month in the 12 months to April 2025. This marks a slight easing from the 7.7% annual increase recorded in March 2025, but rents remain significantly elevated compared with previous years.
Regional figures show a varied picture. In England, average monthly rents reached £1,390, representing a 7.5% rise over the year. Wales recorded the highest annual rental growth rate at 8.7%, with average rents climbing to £795. Scotland saw more modest growth of 5.1%, with average rents standing at £999 in April. In Northern Ireland, rents increased by 7.8% year-on-year to £843, although these figures refer to data up to February 2025, the most recent period available.
Within England, rental inflation was most pronounced in the North East, where prices increased by 9.4% in the 12 months to April. At the other end of the scale, Yorkshire and The Humber saw the lowest annual increase at 4.0%, suggesting a growing divergence in regional affordability.
In comparison, house prices rose at a slower pace over the same period. The average UK house price increased by 6.4% to £271,000 in the 12 months to March 2025, according to provisional estimates. This marks an acceleration from the 5.5% growth rate recorded in February.
Looking at the regions, England’s average house price climbed to £296,000, up 6.7% over the year. Wales recorded a smaller increase of 3.6%, with average prices reaching £208,000, while Scotland’s average house price rose by 4.6% to £186,000.
The latest figures indicate that rental growth remains ahead of house price inflation across most of the UK, despite the recent moderation in rental increases. The regional variation in both sets of data points to continuing pressures on affordability for renters and buyers alike, depending on location.
“At a time when the wider economy remains a potential concern globally, it’s positive to see the UK housing market weather the storm well and deliver growth," comments Propertymark CEO Nathan Emerson. "It’s also positive to see continued momentum following what was a well-documented ‘Stamp Duty hike rush’ across England and Northern Ireland before thresholds changed from April 2025 onwards.
“As we head towards the traditionally busy summertime period for the housing sector, it’s positive news to see the Bank of England base rate stand in a much more consumer-friendly position than only twelve months ago, as the market finds balance. Over the coming months, we should see mortgage products become available that deliver more affordability and help boost consumer confidence.”
On the latest private rental prices, Emerson said: “Overwhelming demand within the rental sector continues to influence price increases for those who rent. We continue to witness, on average, around ten applicants for every property available to rent and this is a situation that has broadly remained stagnated across the last five years.
“It is imperative that rental supply rises to meet the challenges of demand, especially as the UK population is estimated to further grow to within the region of 70 million people across the next five years. It is important to have a clear-cut plan to meet future rental demand, especially when you consider the continued growth in the number of people renting across the last decade alone.”
Tom Bill, head of UK residential research at Knight Frank commented, “Stripping out the impact of the stamp duty deadline, the pressure on house prices this spring is downwards. Inflation is proving to be stubborn, which will prevent mortgage rates from falling as quickly as hoped, and buyers are hesitant due to growing household financial pressures and wider economic concerns. On top of that, asking prices will need to reflect the fact that supply currently far outweighs demand. Demand is likely to get stronger later this year as more interest rate cuts move onto the radar for the Bank of England.”
On rents, Bill added, “Rental value growth is still stubbornly high due to robust demand and supply that is falling as more landlords leave the sector. The Renters’ Rights Bill was designed to benefit tenants but the risk is that it has the opposite effect by cutting supply and keeping rents at levels that remain historically high.”
Nick Leeming, Chairman of Jackson-Stops, comments, “The early months of 2025 have laid a strong foundation for the housing market, driven by rising demand and steady price growth. In March, buyers moved swiftly ahead of the impending Stamp Duty changes, fuelling a notable price uptick at the same time."
“Looking ahead, price growth is likely to be moderate, with regional variations continuing to shape local market dynamics. The true test for this year will be activity levels post-Stamp duty changes; sustained momentum could drive a buoyant summer, but without the same time pressure, price growth may soften."
“Encouragingly, across the Jackson-Stops network we are seeing robust activity levels, with demand outpacing supply in popular markets. In April alone, an average of five potential buyers were competing for every new listing, underscoring borrower’s continued commitment despite an everchanging economic situation."
“Now, the Government must reaffirm its pledge to deliver 1.5 million homes during this Parliament. Until this happens, the market cannot fully realign to meet the needs of both current and future buyers.”
Richard Harrison, Head of Mortgages at Atom bank, said, “The Stamp Duty deadline has clearly played a big role in the heightened level of house price growth we have seen in recent months. Housebuyers understandably were likely desperate to get deals completed before the end of the Stamp Duty holiday, with Propertymark noting a sharp jump in the number of prospective buyers registering with estate agents. Vendors have been able to take advantage, and maximise the sale price.
“It would be a mistake to assume that the Stamp Duty regime returning to its previous levels will result in a drop in house prices, however. Lenders have been incredibly active in reducing rates, even before last week’s Base Rate reduction, with Moneyfacts data showing that the average two-year fixed rate is now at its lowest level since September 2022, before the mini-budget. Coupled with product choice reaching its highest point since October 2007, the range of attractively priced options will mean plenty of buyers are confident about proceeding with a transaction.
“The ingredients are there for further house price growth this year and beyond, with the risk of freezing out whole groups of aspiring homeowners, such as those with modest deposits or imperfect credit ratings. It’s crucial that lenders ensure these buyers have access to the funding they need to make homeownership achievable, rather than simply a pipedream.”
