Private rent and house prices, UK: December 2025
Main Points
- Average UK monthly private rents increased by 4.4%, to £1,366, in the 12 months to November 2025 (provisional estimate); this annual growth rate is down from 5.0% in the 12 months to October 2025.
- Average rents increased to £1,422 (4.4%) in England, £820 (6.1%) in Wales, and £1,012 (3.3%) in Scotland, in the 12 months to November 2025.
- In Northern Ireland, average rents increased to £871 (6.4%), in the 12 months to September 2025.
- In England, private rents annual inflation was highest in the North East (8.4%), and lowest in London (2.8%), in the 12 months to November 2025.
- Average UK house prices increased by 1.7%, to £270,000, in the 12 months to October 2025 (provisional estimate); this annual growth rate is down from 2.0%, in the 12 months to September 2025.
- Average house prices increased to £292,000 (1.4%) in England, £211,000 (1.5%) in Wales, and £192,000 (3.3%) in Scotland, in the 12 months to October 2025.
Commenting on house prices, Nathan Emerson, CEO of Propertymark, comments:
“Now that any uncertainty regarding anticipated Stamp Duty reforms across England and Northern Ireland in the build-up to the Autumn Budget is behind us, we should see the flow of housing transactions returning to a much smoother and expected seasonal trend.
“As we head into the new year, we traditionally see a positive uplift in activity with many people choosing to market their property directly after Christmas, as well as buyers firing up their ambition to move as we approach springtime.
“Boosting the supply of new homes to meet an ever-increasing demand remains integral to overall house price stability. With firm promises from various governments across the UK, it will be a case of keeping a close eye on progress regarding precisely how many homes are completed as the new year plays out.”
Commenting on rental prices, Nathan Emerson, CEO of Propertymark, comments:
“Though it might be disappointing for many to see that rents on average have increased overall, it is encouraging to see that through 2025, we have witnessed rental inflation trending downwards.
“There remains an unhealthy imbalance between rental supply and demand, however, which continues to contribute to rental prices edging upwards. It has been positive to see attention focused on ensuring higher standards and greater consumer protection for those who choose to rent during the year; however, it also remains fundamentally important that investment is encouraged to keep pace with ever-growing demand, as the population continues to expand.”
Darrell Walker, Group Sales Director at Chetwood Bank for ModaMortgages and CHL Mortgages for Intermediaries, said:
“We have to remember that these figures lag two months behind, which means the data reflects a moment when the market was slowing down, with September’s slight drip in prices not surprising. Amidst all the speculation, buyers and sellers were awaiting clarity from the Autumn Budget. That makes this annual price growth in the ONS data all the more notable and – when you consider that Halifax’s most recent house price index showed record highs – it underlines just how resilient the market remains.
“With the Budget now behind us and expectations of a rate cut from the Bank of England continuing to build, there is far more positivity in the market as we head towards the New Year. Confidence tends to return as uncertainty subsides, and combined with a potential fall in the cost of borrowing, we could see a release of pent-up demand over the coming months as buyers who’ve been waiting on the sidelines start to re-enter the market.
“For brokers, this is a moment to seize. We know activity may be quieter in the fortnight either side of Christmas, but momentum is building beneath the surface. To support them, lenders should step up their support and provide the tools brokers and their clients will need to capitalise on the market’s strong potential and hit the ground running in 2026.”
Paresh Raja, CEO of Market Financial Solutions, said:
“Growth may have flatlined in September, but the fact that prices have still increased in 2025 overall, despite a significant amount of economic and political uncertainty, speaks volumes about the market’s underlying strength. As we head towards 2026, there are two notable reasons for optimism: firstly, the chaos surrounding the Autumn Budget has now passed, and secondly, there are expectations of a base rate cut (if not tomorrow then early next year). Tomorrow’s decision by the Bank of England is obviously important – a cut would take the base rate to its lowest level since early 2023, providing a real boost to borrowers.
“Should the MPC deliver a cut, it would give buyers and investors a meaningful confidence boost. But even if rates are held, the market is still well placed to make progress – as long as lenders remain proactive. This means adapting products in line with shifting conditions and giving brokers the tools and flexibility they need to keep transactions moving at pace. With the right support in place, the sector can continue to build fresh momentum into the New Year.”
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