Average UK private rents rose by 5.9% in the year to July 2025, slowing for the seventh consecutive month, according to the Office for National Statistics (ONS). At the same time, house prices increased by 3.7% to reach £269,000 in June — the strongest annual rise since late 2023. For landlords, that signals a cooling rental market but renewed price growth across much of the UK property landscape.
Rent growth slows but remains high for landlords
The ONS found that average UK monthly rents reached £1,343, up from £1,268 a year earlier. England saw a 6.0% rise to £1,398, while rents in Wales grew 7.9% to £807. Scotland recorded 3.6% growth to £999, and Northern Ireland rents climbed 7.4% to £855 in the 12 months to May.
Landlords in the North East experienced the sharpest increases, with rent inflation of 8.9%, compared to just 3.5% in Yorkshire and The Humber. This regional divergence continues to define the post-pandemic rental market, as affordability pressures in southern regions temper growth while demand outpaces supply further north.
Nathan Emerson, CEO of Propertymark, said the average income needed to rent a home now exceeds £45,000, highlighting ongoing affordability pressures. He added: “We are about to witness some of the biggest evolutions in over thirty years within the rental sector… it is essential that all eyes are turned to encouraging long-term investment in the rental sector to keep up with increased demand and population growth.”
For landlords, that “evolution” refers to the Renters’ Rights Bill in England and the Housing (Scotland) Bill, both set to overhaul standards and rights. Yet without incentives to expand supply, investors argue, such reforms risk squeezing out small landlords and worsening rental shortages.
House prices rebound as buyers return to market
Average UK house prices rose 3.7% in the 12 months to June 2025, up from 2.7% in May, signalling renewed activity across the property market. Prices now average £291,000 in England, £210,000 in Wales, and £192,000 in Scotland, according to the latest UK House Price Index.
Jonathan Hopper, CEO of Garrington Property Finders, noted that “house and flat prices are heading in opposite directions,” with flat prices down 0.8% in England and 2.6% in London. He said: “The imbalance between supply and demand is giving buyers the luxury of time and choice — and emboldening them to ask for price reductions.”
This mixed picture suggests the market is rebalancing rather than declining. Investors holding property long-term may find renewed opportunity as affordability improves for buyers and yields stabilise for landlords.
Budget speculation and what it means for landlords
With the Autumn Budget fast approaching, landlords are watching for any Stamp Duty reform, which could reshape the buy-to-let landscape. Emerson of Propertymark said scrapping or redesigning Stamp Duty “has potential to create a smoother-flowing property marketplace,” provided it removes barriers to home ownership and investment alike.
Alex Upton, Managing Director at Hampshire Trust Bank, added: “We’re still well short of the rental stock needed, and without clear, practical measures to boost supply, that imbalance will keep rents under pressure… professional investors who understand the long-term opportunity in property are preparing for what comes next.”
For portfolio landlords, that may mean revisiting finance structures ahead of potential fiscal changes. Specialist lenders are already reporting increased demand for refinancing and bridging loans as investors prepare for policy shifts and renewed housing demand.
Editor’s view
The ONS data paints a nuanced picture: rental growth is cooling but far from collapsing, while house prices are rising again. The combination may mark the start of a more sustainable cycle — one that rewards strategic landlords who hold, refinance, and adapt to policy shifts. Whether the Autumn Budget brings clarity or chaos remains to be seen, but seasoned investors will be positioning now for the next phase of opportunity.
Author: Editorial team — UK landlord & buy-to-let news, policy, and finance.
Published: 22 October 2025
Sources: ONS, Propertymark, Garrington Property Finders, Hampshire Trust Bank.
Related reading: House prices steady as landlords sell ahead of Autumn Budget
