Private rent inflation eased again in March while UK house prices rose modestly in February, according to the latest official figures, although lenders and brokers warned that geopolitical tensions and higher energy costs could yet unsettle the market.
The latest ONS data shows average UK monthly private rents rose by 3.4% in the 12 months to March 2026, taking them to £1,377. That was down from annual growth of 3.6% in February.
Average rents reached £1,434 in England, up 3.4% year-on-year, while Wales recorded annual growth of 4.8% to £830 and Scotland saw rents rise 2.1% to £1,022. In Northern Ireland, average rents increased by 5.0% to £880 in the 12 months to January 2026.
Within England, rental inflation remained uneven. The North East posted the strongest annual growth at 6.5%, while London recorded the lowest at 1.7%.
The housing sales market also continued to move forward, albeit at a subdued pace. Average UK house prices increased by 1.2% in the 12 months to February 2026, taking the average price to £268,000. That was up from annual growth of 1.0% in January.
In England, average house prices rose by 0.8% to £290,000. Wales saw growth of 2.5% to £210,000, while in Scotland prices increased by 2.3% to £187,000.
CAUTIOUS CONFIDENCE
Louise Apollonio, sales and distribution director for retail mortgages at Shawbrook, said: “Property prices are continuing to suggest cautious confidence during the start of the year.
“In the coming months, this trend is likely to remain volatile in response to the threat of rising energy costs and broader impact from events in the Middle East. For those in the market and looking to buy in the coming months, it’ll be crucial to speak to a broker to explore all options and make the best possible decision in the journey towards home-ownership.”
CALM BEFORE THE STORM
Chris Storey, chief commercial officer at Atom bank, said: “This data represents the calm before the storm, as it predates the conflict in the Middle East and the resulting turbulence. Future data from the ONS will reveal the true impact of the conflict on house prices, and whether it has acted as a brake on the growth seen this month.
“Thankfully, things are beginning to settle, with Moneyfacts last week reporting the first drop in mortgage rates since the start of the war in Iran, good news for aspiring buyers.
“Those would-be buyers should steel themselves for a painfully slow journey, however. The latest data from Propertymark shows 43% of transactions taking 17 weeks to reach completion, the highest proportion since it started tracking the data in 2015.
“It’s extraordinary that the housebuying process still takes so long, creating stress for all involved. As an industry, we must continue to look for ways to streamline that process, providing greater peace of mind to brokers and their customers.”
AFFORDABILITY CONCERNS
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “Inflation rising to 3.3% is not surprising given the hike in fuel prices on the back of the Middle East conflict, and it is expected to edge higher still in coming months.
“Affordability concerns are once again an issue for borrowers, as mortgage rates headed upwards on the back of expectations that interest rates would stay higher for longer. However, in recent days there has been some relief as a number of lenders have reduced their fixed-rate mortgages, including Santander, HSBC and Skipton – a trend we hope to see continue in coming days.”
