ONS Private rent and house prices UK – April 2025

The Price Index of Private Rents (PIPR) measures private rent inflation for new and existing tenancies. The UK House Price Index measures house price inflation.

Main Headlines

  • Average UK monthly private rents increased by 7.7%, to £1,332, in the 12 months to March 2025 (provisional estimate); this annual growth rate is down from 8.1% in the 12 months to February 2025.
  • Average rents increased to £1,386 (7.8%) in England, £792 (8.9%) in Wales, and £1,001 (5.7%) in Scotland, in the 12 months to March 2025.
  • In Northern Ireland, average rents increased to £838 (8.2%) in the 12 months to January 2025.
  • In England, private rents annual inflation was highest in the North East (9.4%) and lowest in Yorkshire and The Humber (4.6%), in the 12 months to March 2025.
  • Average UK house prices increased by 5.4%, to £268,000, in the 12 months to February 2025 (provisional estimate); this annual growth rate is up from 4.8% in the 12 months to January 2025.
  • Average house prices increased to £292,000 (5.3%) in England, £207,000 (4.1%) in Wales, and £186,000 (5.7%) in Scotland, in the 12 months to February 2025.

Thoughts from the Industry

Nathan Emerson, CEO of Propertymark:

“Housing is one of the most fundamental elements that can help drive overall economic progress, so it is welcome news to witness further house price growth year-on-year as we progress into 2025, especially at a time when there is a growing concern as to how international policies may impact the wider UK economy moving forwards. However, there are wider reports suggesting reduced mortgage rates could be a realistic outcome from recent events.

“It remains positive to see people approach the buying and selling process with a strong degree of confidence, despite inflation not being below the Bank of England target level of 2 per cent quite yet. We have seen an upbeat start to the year, and we remain optimistic this will continue into the traditionally busy spring and summer months.”

Simon Gerrard, Chairman of Martyn Gerrard Estate Agents:

“This rise in house prices follows a particularly active first quarter, as buyers raced to beat the stamp duty deadline. With property prices continuing to rise well above affordable levels – particularly in parts of London, where the average first home now costs more than ten times the average salary – the recent stamp duty changes will only exacerbate the crisis for first-time buyers, who will now find it nigh on impossible to get their foot on the property ladder.

“If the Government is serious about supporting first-time buyers, abolishing Stamp Duty for this group altogether would be a good place to start, or changing the regime so that sellers pay it instead. Without meaningful action, we risk going around in circles – observing the same structural issues play out in the market month after month.

“With global economic uncertainty still dominating the backdrop, the Bank of England’s next move on interest rates will be critical. A cut might ease the pressure on mortgage rates, offering some relief for buyers – but it’s far from a silver bullet.”

Greg Tsuman, Managing Director, Lettings of Martyn Gerrard Estate Agents:

“Today’s figures confirm what renters already know: rents are still rising, just not quite as ferociously as before. We’ve reached the upper limit of affordability for renters across the UK, and the gap between existing rents and newly agreed tenancies will likely continue to narrow.   

“But for the millions relying on housing benefits, this slower pace of growth offers little relief. The gap between what tenants on benefits receive and what the market demands continues to grow. Since the pandemic, rents have increased by approximately 30%, creating a chasm between support levels and market reality.

“After a long-overdue uplift in Local Housing Allowance last April, rates are already frozen again until 2026, while rents keep climbing. Right now, just 2.5% of private rentals in England are affordable on housing benefit. Around 38% of private renters in England receive LHA support, and across the UK, more than 3.6 million households are now struggling to access an increasingly out-of-reach rental sector. The government’s plans to prevent income-based discrimination are welcome, but they ring hollow if renters on benefits are still effectively priced out.

“It’s time to revisit Section 24. Most landlords – approximately 2.8 million – are still private individuals and are directly impacted by what is effectively a tax on their biggest cost. The majority of these must add at least 33% to any increase in interest payments simply to break even. When landlords are forced to hike rents just to stay afloat, it’s tenants who pay the price.

“Removing Section 24 could be a positive move for the Treasury. It could ease upward pressure on Local Housing Allowance rates in 2026 and help reduce the taxpayer burden associated with temporary accommodation, which becomes necessary when tenants are priced out of the market.”

On Sales

Jean Jameson, Chief Sales Officer at Foxtons:

“March brought good new momentum to the sales market, with strong demand from first-time buyers driving activity, particularly for one- and two-bedroom homes. While the stamp duty change was on the radar for some, it wasn’t the dominant factor, and buyer confidence remained steady. We head into spring with a healthy level of interest and a sense of renewed energy across the market.”

On Lettings:

Gareth Atkins, Managing Director of Lettings:

“The London lettings market is gaining momentum as we enter April, with March delivering a 14% surge in new listings – the largest uplift so far this year. Simultaneously, applicant registrations climbed 11%, reflecting strong seasonal interest and sustained confidence among renters. With more choice coming to the market, renters are well-positioned this spring. At the same time, the steady flow of listings is helping to keep conditions balanced across much of the capital, creating a more stable and competitive environment for everyone navigating the market.”

EAN Breaking News

Breaking News from the team at Estate Agent Networking. Have a new story to share with us? Then please get in contact today! When and where we can we will refer to third party websites with a 'live link back' where news was released first.

You May Also Enjoy

Estate Agent Talk

What AI Can and Can’t Fix in Block Management

By Robert Poole, Director – Block Management, Glide Property Management, part of LRG In an industry increasingly shaped by regulation, rising expectations and squeezed margins, the promise of AI and automation in block management is understandably appealing. The idea of freeing property managers from repetitive tasks, improving compliance, and streamlining communication offers significant operational value.…
Read More
Crowded beaches - Clacton-on-Sea in Essex
Overseas Property

The top holiday property hotspots for UK buyers

Greece’s property market sees highest level of property transactions since 2009 The latest analysis from international property consultancy, Astons, reveals that Greece’s property market is in the middle of an extraordinary growth period with the past decade seeing transaction numbers increase year after year, with 2025’s total sales set to hit the highest point since…
Read More
Estate Agent Talk

Regulation overload?

Reapit report shows concerns over Renters’ Rights Bill as government plans improvements to bailiffs and tribunals There is widespread concern across the property sector over incoming regulatory changes – including the Renters’ Rights Bill – according to research by leading PropTech provider, Reapit. Their Property Outlook Report 2025 reveals letting agents, landlords, and sales professionals…
Read More
Estate Agent Talk

Later life living – turning a corner for investors?

By Daniel Austin, CEO and co-founder at ASK Partners By 2072, almost 30% of Britons will be aged 65 or over. This stark demographic shift is already taking shape, with profound implications for the housing market. Despite an estimated shortfall of at least 4.3 million in the UK today, less than 1 million are specifically…
Read More
Breaking News

Bristol crowned best area for downsizers

The latest research from over-50s property specialists, Regency Living, has revealed where in England downsizers have the greatest choice of suitable homes to move to and where they face the toughest search based on the availability of suitable stock in the current market. Regency Living analysed current property market listings, looking at the proportion of…
Read More
Breaking News

Kensington tops list of prime London oversupply, but gardens still drive buyer demand

The latest research from Jefferies London has found that Kensington is currently the most oversupplied area of the prime London property market, giving buyers the best chance of negotiating a deal, with more than 2,200 homes listed for sale, accounting for 20% of all prime central stock. Jefferies London analysed current market listings across each…
Read More