Household Costs Indices for UK household groups: January to March 2025
May 29, 2025
Household Costs Indices, 12-month growth rates, expenditure shares and contributions for UK household groups and all-households. These are official statistics in development.
Main points
- Overall UK household costs, as measured by the Household Costs Index (HCI), rose by 2.6% in the year to March 2025; this is a fall from 2.9% in the year to December 2024.
- The all-households inflation rate has followed the sixth income decile most closely over the past 12 months; costs for these households rose 2.5% in the year to March 2025, compared with rises of 2.7% for high-income households (decile 9) and 2.5% for low-income households (decile 2).
- By tenure type, private renter households had the highest annual inflation rate of 3.6% in March 2025, reflecting rising private rental payments; this was followed by social and other renter households, which had a 3.0% inflation rate in the year to March 2025.
- Outright owner occupiers experienced the lowest annual inflation rate of all tenure types, at 1.8% in the year to March 2025; mortgagor households had the next lowest (2.8%).
- Non-retired households continued to experience a higher annual rate of inflation (2.8%) in March 2025 than retired households (2.1%).
- The annual inflation rate for households with children fell from 3.1% in December 2024 to 2.8% in March 2025; for households without children, it declined from 2.8% to 2.6% over the same period.
Angharad Trueman, ARLA Propertymark President, comments:
“With private rents seeing their highest annual inflation rate in March 2025, it remains more vital than ever the UK Government and the devolved administrations take a wide angle view regarding taxes impacting the private rental sector and look at ways to encourage and support new investment for the long term. Currently such factors are sadly contributing towards driving up costs and reducing the supply in some areas for rental properties.”
You May Also Enjoy
Closing the gap on client relationships and recommendations
New research from iamproperty has highlighted the growing disconnect between what buyers and sellers want from their agent and what they experience, which could be killing recommendations from happy clients. iamproperty’s quarterly consumer survey revealed that only a third of respondents (32%)¹ would recommend their agent following their experience. With many agents relying on recommendations…
Read More 
Northern Ireland to expect over 25,000 new home movers
Belfast-based estate agency John Minnis has revealed that Northern Ireland is to welcome an estimated 25,000- 30,000 new arrivals from the UK and Europe over the next five years, as migration to the region reaches its highest levels in more than a decade. Recent figures show that 11,700 people relocated from other parts of the…
Read More 
Red tape and rising costs stifling new-build availability across the capital
The latest analysis from London estate agent, Benham and Reeves, has revealed how protracted building timelines are preventing the capital’s housebuilders from delivering the level of new-build housing stock required to meet demand, with new homes currently accounting for just 7.5% of all properties listed for sale across London. Benham and Reeves analysed the latest…
Read More 
UK’s new wave of ‘second cities’ offers strongest yield growth for property investors
The latest research from West One Loans has found that whilst investors may continue to favour the nation’s key cities such as London, Birmingham, and Manchester, a new wave of ‘second cities’ is delivering the strongest growth in rental yields. These emerging markets are offering investors the chance to achieve attractive returns, driven by rising…
Read More 
Decline in change of use further constricting housing supply
Jonathan Samuels, CEO of Octane Capital, believes that a decline in conversion projects could ultimately prevent the Government from hitting its ambitious housing delivery targets, as the firm’s latest analysis has revealed that the number of homes created through change of use has fallen sharply in the last five years. Octane Capital analysed official Government…
Read More 
Annual price fall driven by south, which could be harder hit by rumoured property taxes
The average price of property coming to the market for sale rises by 0.4% (+£1,517) this month to £370,257. However, average new seller asking prices are now 0.1% below this time last year following several months of muted price growth The dip in annual prices is driven by London and the south, as the south…
Read More