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UK Rental Growth Accelerates to 3.7% While House Price Inflation Slows

UK rental growth increased to 3.7% in the 12 months to July, reaching its highest annual rate since December 2025, according to ONS data. This contrasts with a slowdown in house price inflation, which rose by 2% in the 12 months to June.

  • Average UK private rents increased by 3.7% annually to £1,393 in July.
  • UK house prices rose by 2% annually to £272,000 in June, down from 3% in May.
  • London saw annual rent growth accelerate from 2.2% to 3%, but house prices in the capital fell by 2.5% year-on-year.

UK rental growth accelerated in July, reaching an average monthly private rent of £1,393, a 3.7% increase over the past 12 months. This marks the highest annual rate of rent inflation since December 2025, driven largely by an acceleration in London where annual growth rose from 2.2% to 3%.

Across the UK, average rents reached £1,451 in England, £843 in Wales, and £1,016 in Scotland. Northern Ireland recorded a 2.3% rise to £875 in the 12 months to May 2026, which was its lowest annual rate of rental inflation in over five years.

In contrast, UK house price inflation slowed for the second consecutive month, with average prices increasing by 2% in the 12 months to June to £272,000. This is down from 3% annual growth in May. The ONS attributed this slowdown to weaker price growth in early summer this year compared to the same period in 2025.

London remained the weakest house sales market, experiencing a 2.5% year-on-year fall in average prices, marking the tenth consecutive month of annual declines. Meanwhile, Northern Ireland saw considerably stronger house price growth, with average prices rising 9.2% annually to £202,000 in the second quarter of 2026.

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