New data from the Office for National Statistics (ONS) shows that UK house prices are continuing to rise, while growth in private rents is easing, signalling a more balanced but still high-cost housing market across the country.
According to the latest Private Rent and House Prices, UK: June 2026 bulletin, average UK house prices increased by 3.8% in the 12 months to April 2026, bringing the average property value to approximately £270,000. This marks a return to positive growth following a period of stagnation in March 2026, when annual house price inflation was recorded at 0.0%.
The ONS noted that the latest rise represents the strongest annual increase in house prices since March 2025. The change has been partly influenced by market adjustments following previous policy shifts, including changes to Stamp Duty Land Tax in April 2025, which affected buying activity and price comparisons over the year.
House Price Growth Across the UK Nations
House price growth varied across the UK. In England, average prices rose by 3.9% to £291,000. Wales saw a 3.5% increase, with average prices reaching £212,000, while Scotland recorded a 2.8% rise to £192,000. Northern Ireland continued to show steady momentum, with prices increasing by 7.4% over the year.
The data highlights ongoing regional differences in affordability and demand, with England maintaining the highest average house prices, while Northern Ireland continues to record comparatively stronger percentage growth.
Rental Growth Continues to Slow
In contrast to the housing market, growth in private rental prices is easing. The ONS reports that average UK monthly private rents rose by 3.3% in the 12 months to May 2026, down from 3.5% in the previous month.
The average UK rent now stands at approximately £1,383 per month, reflecting continued affordability pressures despite the slowdown in growth. This marks a gradual cooling in rental inflation, which has been easing since late 2024.
England recorded average rents of £1,442 per month, up 3.4% year-on-year. Wales saw rents rise by 4.7% to £836, while Scotland experienced the slowest growth, with rents increasing by just 1.0% to £1,009. In Northern Ireland, average rents reached £876, reflecting a 3.3% annual increase.
The ONS also highlighted significant differences in rental growth across England, with the North East experiencing the fastest increase at 5.9%, while London recorded the slowest growth at 2.0%.
Market Trends Show Cooling Rental Inflation and Stable Demand
The latest figures suggest that the UK rental market is gradually stabilising after several years of rapid price increases (Source: J Property Management). While rents remain high compared to historical levels, the pace of growth is slowing across most regions.
Analysts suggest this trend may reflect affordability constraints among tenants, alongside an increase in housing supply in certain areas and shifting demand patterns. Despite the slowdown, rental prices continue to rise above general inflation in many regions, maintaining pressure on household budgets.
At the same time, the housing market is showing renewed growth, supported by steady demand and limited supply in many areas. The combination of rising property prices and high rents continues to present challenges for first-time buyers and renters alike.
Office Rents Also Continue To Rise
Over the past year, UK office rents have generally continued to rise, but the growth has been uneven across locations and strongly driven by a shortage of high-quality space.
Well located and prime offices to rent in central London, particularly in major cities and London submarkets, have seen the strongest increases as businesses compete for modern, energy-efficient buildings that support hybrid working and employee expectations.
In contrast, older or less well-located offices have experienced more stable or weaker pricing, reflecting a clear “flight to quality” trend. Overall, limited new development and tight availability have kept upward pressure on rents, even though occupier demand has been more selective and focused on better-grade space rather than overall expansion.
Wider Housing Context
The ONS data arrives at a time when the UK housing market remains under close scrutiny due to affordability pressures and broader economic conditions. While inflation has moderated compared to previous years, housing costs remain a significant driver of financial strain for many households.
Recent economic indicators also show mixed conditions in the wider economy, with wage growth, interest rate expectations, and regional economic performance all influencing housing demand and affordability.
Outlook
Looking ahead, the housing market is expected to remain sensitive to changes in interest rates, mortgage affordability, and regional economic growth. Rental inflation may continue to moderate if affordability constraints persist, while house prices could remain volatile depending on supply levels and borrowing conditions.
Overall, the latest ONS figures point to a housing market that is stabilising in some areas but still operating at historically high price levels, with ongoing regional variation and continued pressure on affordability across the UK.
