The Office for National Statistics said UK private rent inflation slowed to 3.3 percent in May while annual house price growth rose to 3.8 percent in April, giving landlords a split signal on cooling rental momentum and firmer sales-market sentiment.
The latest release showed annual rent growth easing from 3.5 percent in April, while house price growth rebounded from zero after last year’s stamp duty-driven drop created a favourable comparison. That makes the timing point clear: rents are still rising, but the pace is softening just as headline sales values look stronger again.
For landlords, the immediate point is that rents are still rising, but not at the pace seen through the peak inflation period. Meanwhile, firmer house price data may support seller confidence in some regions, even if the national headline is flattered by base effects rather than a sudden jump in underlying demand.
Rent growth keeps cooling across most of the UK
The ONS said average UK rent now stands at £1,383 a month. England’s annual rent inflation eased to 3.4 percent, Wales slowed to 4.7 percent and Scotland dropped to 1.0 percent, its lowest annual rise for almost a decade. In England, the North East remained the strongest region at 5.9 percent, while London stayed weakest at 2.0 percent.
That matters for landlords because it points to a market where national rental growth is still positive but increasingly local in character. Some areas are still delivering firm annual rises, while others are settling into slower increases that leave less room for aggressive re-pricing.
Nathan Emerson, chief executive of Propertymark, said continued rental growth still reflected the imbalance between supply and demand across the private rented sector. He said letting agents were continuing to report strong tenant demand alongside a shortage of available properties, adding that increasing rental supply had to remain a priority if affordability pressures were to ease.
Alex Upton, managing director of specialist mortgages and bridging finance at Hampshire Trust Bank, said the ONS headline did not capture a two-speed rental market, with lower-cost areas still seeing much firmer growth than more expensive locations. He said that was pushing many landlords away from simple expansion and towards portfolio quality, more dependable income, and specialist property types such as HMOs and mixed-use assets.
This fits with recent LK reporting on Goodlord’s May rental inflation data, which also pointed to a cooler market, and on tenants staying in rented homes for longer, suggesting demand is persistent but affordability is putting a cap on how far rents can be pushed.
House price rebound needs careful reading
The same ONS release showed average UK house prices rising to £270,000 in April, with annual growth picking up to 3.8 percent. England was up 3.9 percent and the North East led regional house price inflation at 9.9 percent, while London remained the weakest major market and was still down 2.1 percent on the year.
The ONS was clear that much of the jump reflects a base effect after the sharp price fall seen in April 2025 around stamp duty changes. For landlords, that is an important distinction. A stronger annual number may help market sentiment, but it does not mean buying conditions have suddenly tightened everywhere.
Propertymark said firmer house prices showed resilience in the market despite ongoing economic pressure, but Nathan Emerson said affordability remained a challenge for many households and longer-term action was still needed to improve supply and consumer choice. That leaves landlords with a more supportive headline on values, but not necessarily a uniformly stronger market on the ground.
This follows Landlord Knowledge’s June report on house prices falling as stamp duty changes bit, which highlighted how tax timing was distorting year-on-year comparisons. The latest ONS figures reinforce that point – headline growth has improved, but landlords still need to separate statistical bounce from real pricing power.
What this means for landlords
- If you are reviewing rents: slower national growth means local evidence matters more than broad UK averages.
- If you are buying: stronger annual house price figures may not signal a fully revived market, especially where the rise is being boosted by last year’s weak comparison.
- Watch for: whether London’s weak house prices and softer rent growth start to diverge further from northern regions.
- Bottom line: rental income is still moving up, but the easy phase of rent inflation looks to be over.
Landlords should also note how far the market has shifted since late 2024. Rent inflation has broadly been slowing for months, but tenant demand has not disappeared. A likely outcome is a market where well-located, well-priced stock still performs, while weaker stock loses momentum faster than before. The latest ONS bulletin points to exactly that sort of regional and pricing split.
Editor’s view
These figures are better read as a warning against lazy national assumptions. Landlords still have demand on their side, but rent-setting is becoming a finer judgement call and house price headlines need more scepticism than they first invite.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 17 June 2026
Sources: Office for National Statistics; Propertymark; Hampshire Trust Bank
Related reading: Goodlord: rental inflation stays at 10-month low in May
