Annual house price growth falls to zero while private rents rise 3.5%
Average UK house prices were flat in the 12 months to March 2026, holding at £268,000, according to the latest Office for National Statistics data.
The annual growth rate fell sharply from 1.7% recorded in the 12 months to February 2026.
The slowdown reflected a 0.4% monthly price fall between February and March 2026, compared with a 1.2% monthly rise in the same period a year earlier, when buyers rushed to complete transactions ahead of April 2025 changes to Stamp Duty Land Tax in England and Northern Ireland.
House prices in England fell 0.6% annually to £290,000 in March 2026, compared with 1.2% growth in the 12 months to February. Wales recorded annual growth of 2.9%, bringing average prices to £213,000, though this was down from 3.3% the previous month. Scotland saw prices rise 1.6% to £187,000, easing from 2.5% in February.
Northern Ireland outperformed all other nations, with average prices rising 7.4% year-on-year to £198,000 in the first quarter of 2026.
UK private rents and house price annual inflation, 2016 to 2026 
Source: Price Index of Private Rents (PIPR) and UK House Price Index (HPI) from the Office for National Statistics
“No increase in average property values over the past 12 months illustrates the tough market conditions we are facing," said Tomer Aboody (pictured right), director of specialist lender MT Finance. "Lack of affordability is the overriding concern for many, particularly first-time buyers and those purchasing in the southeast and London.
“Lack of encouragement of any form from the government has fuelled hesitation in both buyers and sellers with many pausing and taking a ‘wait and see’ approach. With further reductions in base rate on hold at least for now, and more stamp duty paid due to the lack of any concessions this year, there is little incentive to make a move unless you really have to. Despite recent reductions in pricing, mortgage rates are higher than this time last year, so needs-based buyers who still have to move are taking on higher loan-to-values in order to be able to buy."
In the lettings market, average monthly private rents rose 3.5% in the 12 months to April 2026 to £1,381, up marginally from 3.4% growth to March 2026.
In England, average rents reached £1,438, also up 3.5%. Wales recorded the strongest rental growth at 4.9%, pushing average rents to £834, while Scotland saw a 2% rise to £1,019. In Northern Ireland, average rents stood at £877, reflecting 4.0% annual growth to February 2026.
Within England, the North East recorded the highest rental inflation at 6.5%, while London saw the lowest at 2%.
"Rent inflation has historically tracked wage inflation, and we have seen this relationship harmonise in the past year following the severe upwards pressure on rents in the post-Covid era," said Louisa Sedgwick (pictured right), managing director of mortgages at Paragon Bank.
"The conflict in Iran is building some further inflationary pressure into the economy and that will likely to be reflected in the rental market in the coming months. Landlords are not immune to cost pressures and 72% of those planning to increase rent in the next year will do so because of the rising costs they face in operating their business, with six in 10 citing a higher tax burden following the 2025 Autumn Budget.
"Rising mortgage rates are often claimed to be a driver of rental inflation, but less than 40% of rental properties are mortgaged, with the vast majority of those subject to a fixed-rate mortgage, so the impact of mortgage rates increasing is unlikely to be felt across the broader rental sector."
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