Private rents across the UK rose at the same annual rate in February, while house price inflation eased again in January.
Office for National Statistics data show average UK monthly private rents increased by 3.5% in the 12 months to February 2026, unchanged from January, taking the average rent to £1,374.
Across the nations, average rents reached £1,430 in England, up 3.6% year on year, £828 in Wales, up 5.5%, and £1,022 in Scotland, up 2.4%. In Northern Ireland, the latest available figures show average rents rose 5.2% to £875 in the 12 months to December 2025.
Within England, rental inflation remained strongest in the North East at 7.6%, while London recorded the weakest annual growth at 1.7%. The ONS said England’s annual rental inflation rate edged up from 3.5% in January to 3.6% in February, marking the first increase since November 2024.
The latest figures also show UK house price growth continuing to cool. Average UK house prices increased by 1.3% in the 12 months to January 2026, down from 1.9% in the year to December 2025, with the average property now valued at £268,000.
Average house prices rose to £290,000 in England, up 1.1% annually, £210,000 in Wales, up 2.0%, and £188,000 in Scotland, up 1.3%.
The March 2026 release points to a housing market in which rental growth is proving more resilient than house price inflation, even as both measures remain well below the peaks seen in recent years.
CHAOTIC RATE OF CHANGE IN THE MORTGAGE MARKET
Chris Storey, chief commercial officer, Atom bank, said: “Between the chaotic rate of change in the mortgage market, and continued house price volatility, it’s not easy for would-be homebuyers at the moment.
“While the headline rate of house price growth may be down, the reality is there is real variance between different types of property. Rightmove last week reported the price gap between typical first-time buyer properties and larger homes has reached a record high, making it far harder for homeowners to move up the ladder.
“Meanwhile potential first-time buyers face a real battle to save a decent deposit, given the continued cost of living pressures putting every penny under pressure.
“Throw in the volatile mortgage market, where lenders are being forced to reprice and adapt their ranges due to the impacts of geopolitical events, and buyers face an even more stressful experience than usual.
“For brokers and borrowers, now is the time to prioritise working with lenders who can move quickly, providing reassurance and easing some of that stress. In such fast-moving volatile times, brokers have a crucial role to play in bringing some calm, and the right partnerships can help them do just that.”
HEIGHTENED LEVEL OF GLOBAL UNCERTAINTY
Lee Williams, national sales manager at Saffron for Intermediaries, commented: “The latest increase in house prices is encouraging, particularly given the heightened level of global uncertainty in recent weeks.
“Back-to-back rises in January and February pointed to a solid start to the year and underline the market’s underlying resilience, even as external pressures continue to build.
“While earlier momentum was supported by improving sentiment and more active pricing from lenders, recent geopolitical developments have caused the market to pause, with some providers repricing or withdrawing products as conditions shift.
“Looking ahead, the outlook remains more measured. With expectations of further interest rate cuts now on hold, as reflected in last week’s decision to hold rates, alongside ongoing global uncertainty and a shifting policy landscape, some buyers may adopt a more cautious approach in the near term.
“In this environment, it remains as important as ever for borrowers to seek quality mortgage advice from a broker, particularly in a fast-moving and evolving market.
“Specialist lenders continue to support more complex lending requirements and, despite some products being withdrawn, their flexibility on criteria means suitable options can still be found through effective advice.”
