UK Rents Rising as House Price Growth Stalls, ONS Data Shows

The UK housing market is in a unique position at the moment because, according to the Office for National Statistics (ONS), UK rents are still climbing while house price growth has stalled.

Average private rent in the UK rose 3.5% to £1,381 per month in April 2026, while annual house price growth fell to 0%, signalling a sharp slowdown in the sales market. The figures come amid ongoing concerns over rental supply shortages, landlord costs, and the impact of recent housing reforms.

Why Are UK Rents Rising Right Now?

UK rents are continuing to rise because demand for rental homes is outpacing supply. Landlords are also facing higher costs and increased taxation, which are being passed on to tenants.

The latest ONS data shows average private rent in England rose 3.5% annually to £1,438 in April 2026. Wales recorded an even sharper increase of 4.9%, while Northern Ireland saw rents rise 4% year-on-year. Scotland experienced slower rental inflation at 2%, although average rents there still reached £1,019 per month.

Property professionals say the shortage of available rental homes remains one of the biggest drivers of rent rises. Many landlords have reportedly been reconsidering their position due to higher operating costs and recent housing reforms, particularly the Renters Rights Act, reducing the number of homes entering the private rented sector.

Regional differences also remain significant. The North East recorded the strongest annual rent growth in England at 6.5%, while London saw the slowest increase at 2%. Despite slower growth, the capital remained the UK’s most expensive rental market, with average rents in Kensington and Chelsea reaching £3,597 per month. Outside London, Oxford recorded average rents of £1,956, while Dumfries and Galloway in Scotland remained the UK’s cheapest rental area at £552.

Further Rent Rises Possible

Rents are likely to keep rising in the near term, although the pace will depend on how quickly supply in the private rented sector responds to ongoing market pressures.

The latest ONS data and industry commentary suggest that the key issue remains a structural shortage of rental homes, but the more important story now is why that shortage is persisting. Many landlords are continuing to reassess their position due to higher borrowing costs, rising maintenance expenses, and tighter regulations, which are limiting new supply coming into the market.

Alongside this, landlords are increasingly price-sensitive themselves. Higher taxation and operating costs following the 2025 Autumn Budget mean rental increases are often being used to maintain returns rather than expand profit margins. That creates a situation where rents tend to adjust upwards even without a surge in tenant demand.

Taken together, these factors suggest that rents are more likely to remain elevated than to fall back in the short term, even if the pace of growth becomes more uneven across different regions and property types.

Why Have UK House Prices Stopped Growing, Then?

UK house prices have stopped growing, mainly because buyer demand, particularly due to elevated mortgage costs and economic uncertainty. According to ONS figures, average UK house prices stayed flat at £268,000 in the year to March 2026, resulting in 0% annual growth.

This slowdown follows a period of earlier volatility. Annual growth dropped from 1.7% in February 2026 to 0% in March, while monthly prices fell by 0.4% over the same period. Part of this shift reflects the fading impact of earlier market distortions, including the surge in transactions ahead of the Stamp Duty Land Tax changes introduced in April 2025.

England Sees Annual House Price Decline

England recorded the weakest house price performance among the UK nations. Average house prices in England fell by 0.6% annually to £290,000, leaving values around £2,000 lower than a year earlier.

Wales recorded stronger growth, with average prices increasing 2.9% annually to £213,000. In Scotland, average house prices rose 1.6% to £187,000. Northern Ireland remained the strongest-performing housing market in the UK. Average property prices there increased by 7.4% annually to £198,000.

Will House Prices Recover?

Despite the slowdown in house price growth, some property analysts remain optimistic about the housing market outlook.

Buyer activity has been increasing, particularly among first-time buyers. That’s why some experts predict that housing market activity will strengthen over the coming year.

What Does the Latest ONS Data Mean for Landlords?

Earlier, landlords used to make money in two ways - monthly rent and rising property values. With price growth now paused, that second source of return has weakened, leaving rental income as the main driver of performance.

This also means costs have a bigger impact than before. When house prices are not rising, expenses like mortgage payments, maintenance, insurance, and tax take up a larger share of income. As a result, profitability depends more heavily on the strength of the rent relative to the costs of running the property.

Location has also become more important. Some areas, such as the North East, are seeing faster rent growth, while London is growing more slowly but still has very high rents. This creates wider differences in performance depending on where a property is based.

Conclusion

The latest ONS data makes one thing clear — the UK housing market is not moving in sync. While house prices have stalled, rents are rising, showing a growing divide between the sales market and the rental sector.

For tenants, this means continued pressure on affordability. For landlords, it signals a shift in how returns are generated, with rental income now doing most of the heavy lifting in the absence of house price growth.