Private rents reach £1,383 as annual growth slows for second consecutive month
Average UK house prices rose 3.8% in the year to April, reaching £270,000, according to figures published by the Office for National Statistics (ONS) in its latest UK House Price Index and Price Index of Private Rents.
The sharp uptick in the headline figure is largely attributable to a base effect. Average prices rose modestly between March and April 2026, while in the same period a year ago, they fell sharply, following changes to Stamp Duty Land Tax (SDLT) in England and Northern Ireland on 1 April 2025.
Average UK house prices increased 3.8% to £270,000 in the 12 months to April 2026, up from 0.0% in March 2026.
— Office for National Statistics (ONS) (@ONS) June 17, 2026
Average UK private rents increased 3.3% to £1,383 in the 12 months to May 2026, down from 3.5% in April 2026.
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In England, the average house price stood at £291,000 in April 2026, representing annual growth of 3.9%, or approximately £10,000. This compares with an annual decline of 0.7% in the 12 months to March. The ONS attributed the reversal to the same SDLT base effect, noting that prices in England rose by a provisional 0.6% between March and April.
Wales recorded an average house price of £212,000 in April 2026, up 3.5% year-on-year (approximately £7,000), compared with 2.8% growth in the prior 12-month period. In Scotland, the average reached £192,000, up 2.8% (approximately £5,000) from a year earlier, versus 1.7% in the 12 months to March 2026. Northern Ireland's most recent comparable data, covering the first quarter of 2026, showed the average price at £198,000, up 7.4% (approximately £14,000) from the same quarter in 2025.
Among English regions, the North East recorded the highest annual house price inflation at 9.9% in the 12 months to April, against a fall of 0.9% in the year to March. The ONS again cited a base effect from significant monthly price falls a year earlier, coinciding with the April 2025 SDLT changes.
London was the weakest-performing region, recording an annual decline of 2.1%, unchanged from the 12 months to March 2026. It was the ninth consecutive month in which London posted a year-on-year fall. The ONS noted that higher average price levels in the capital meant the SDLT changes had a comparatively limited effect on the region.
"Average property values rose 3.8% in the year to April, and given everything that has hit the wider economy over the past 12 months, this resilience in the market is remarkable," said Jason Tebb (pictured right), president of property portal OnTheMarket. "Increased stock, more choice and continued squeezed affordability are likely to keep prices in check for the foreseeable future, which is good news for first-time buyers in particular.
"Behind the average national figures are significant regional differences. Values contracted in London by 2.1% over the year, due to more stock and buyers finding it harder to raise the necessary finance to afford properties which are considerably higher than in some other parts of the country.
"Lenders have been easing their mortgage rates on the back of lower swap rates, and with inflation holding steady at 2.8% in the year to May, this trend should continue. It also increases the chances of a further hold in base rate at this month's meeting of the Monetary Policy Committee, and this steadiness should help improve confidence among buyers and sellers."
In the lettings market, average UK monthly private rents rose 3.3% in the year to May, reaching £1,383, according to ONS data. The rate of annual growth slowed from 3.5% in the 12 months to April 2026.
By nation, average rents in England increased to £1,442, representing annual growth of 3.4%. In Wales, rents rose 4.7% to £836, while in Scotland growth was 1%, with average rents reaching £1,009. Northern Ireland's latest available figure, for the 12 months to March, showed rents up 3.3% to £876.
Within England, annual rental inflation was highest in the North East at 5.9% and lowest in London at 2% in the year to May 2026.
The ONS headline figure on rental inflation, however, obscured deeper trends in the private rented sector, according to Alex Upton (pictured right), managing director of specialist mortgages and bridging finance at Hampshire Trust Bank.
"Recent analysis from Hometrack highlighted a 'two-speed' rental market, where areas with rents below £1,250 per calendar month are still seeing much stronger rental growth than higher-cost locations," she said. "Much of that comes back to supply, particularly in areas where available stock has fallen sharply over recent years.
"That is feeding into the approach we're seeing from landlords. We're having far fewer conversations centred around expansion for the sake of growth and much more focus on portfolio quality and more dependable income. More experienced investors are still active, but they are becoming increasingly selective about the assets they take on and where they see opportunities to strengthen returns over time.
"We're also continuing to see strong appetite for HMOs and mixed-use property, particularly where investors can improve income or reposition assets over the longer term. Those cases often involve more moving parts than a standard refinance or acquisition, which is why brokers are playing such an important role in helping investors work through funding and structure."
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