Private rents across the UK rose by 6.7% in the year to June 2025, taking the average monthly payment to £1,344, according to new figures from the Office for National Statistics.
While this represents the sixth consecutive month of easing rental inflation, it still marks a significant rise for tenants facing sustained affordability pressures.
The pace of rent growth has moderated from the 7.0% recorded in May 2025, continuing a downward trend. However, the ONS data reveals persistent regional disparities. Rents in Wales climbed by 8.2% to £804 per month, the highest annual increase across the four nations, while tenants in Scotland saw a more modest 4.4% rise to £999.
In Northern Ireland, where data is available only to April, the average rent rose by 7.6% to £852.
In England, the average monthly rent reached £1,399 — up 6.7% year-on-year. The North East recorded the highest regional rental inflation at 9.7%, matching a joint record high, while Yorkshire and The Humber saw the slowest rise, at 3.5%.
London, long the most expensive place to rent, saw a 7.3% increase over the year, with average monthly rents now at £2,252. The capital also remains home to the priciest borough for renters, with Kensington and Chelsea commanding average rents of £3,616 in June 2025.
HOUSE PRICES
House price data shows a modest rebound in growth. The average UK house price rose by 3.9% to £269,000 in the year to May 2025, up from 3.6% in April. England’s average stood at £290,000 (up 3.4%), while prices in Wales rose 5.1% to £210,000.
Scotland saw prices increase by 6.4% to £192,000, and Northern Ireland recorded the strongest growth, with average prices up 9.5% to £185,000 in the first quarter of the year.
At a regional level, the North East of England again topped the chart for house price inflation, with a 6.3% annual rise.
The South West recorded the lowest growth at 1.9%, while London’s house price inflation slowed sharply to 2.2%, down from 4.6% in April.
The ONS noted that house price inflation had eased in April, largely due to a fall in the index following Stamp Duty Land Tax changes introduced on 1 April 2025.
Chris Storey, chief commercial officer at Atom bank, said: “The impact of the end of the Stamp Duty holiday is clear to see – while house prices continue to rise on an annual basis, the rate is substantially lower than we had become used to at the start of the year.
“With estate agents seeing drops in new buyer registrations, and Rightmove reporting vendors dropping asking prices in order to stand out amid decade-high competition, further house price growth may be subdued, in the short-term at least.
“Reductions in borrowing costs are making would-be purchasers more confident. Data from Moneyfacts shows that two-year fixed rates, for example, are now at the lowest levels since September 2022, while borrowers have an exceptional level of choice, with the second highest number of mortgage products available since 2007.
“That combination of keen pricing and wider availability is opening up the market to more buyers, and that sort of activity may push prices higher in the months ahead, particularly if – as expected – we see at least one more Base Rate cut, despite the rate of inflation remaining higher than expected.
“Further house price growth threatens to make life hard for those who have been unable to save a sizeable deposit. Questions remain over the effectiveness of measures like the Lifetime ISA, so the onus is on lenders to deliver flexible, common sense lending which keeps housing accessible.
“The changes to the high loan-to-income limits confirmed in yesterday’s Leeds Reforms, as well as the introduction of a permanent mortgage guarantee scheme should make that easier for lenders to do – it’s now all a question of attitude.”
Despite the moderation in both rents and house price inflation, affordability remains a concern. The Royal Institution of Chartered Surveyors reported steady tenant demand but continued decline in landlord instructions, suggesting that pressure on the rental market may persist in the months ahead.
