UK private rents have hit another record high, with average monthly payments rising 3.3% to £1,388 in the year to June 2026, according to data from the Office for National Statistics (ONS). Meanwhile, house prices in England are slowing significantly, increasing by just 2.3% or £6,000 over the past 12 months.
For tenants across the UK, the rental market remains a pressing issue, with high demand and limited supply driving up rents. Propertymark's Chief Executive Nathan Emerson highlighted that for every property on offer, around seven potential buyers approach its member agents, exacerbating the imbalance between supply and demand. This shortage of available homes has led some landlords to adopt a 'wait-and-see' approach, weighing whether rent increases justify their continued investment.
Across England, house price growth is decelerating sharply, with prices rising by just 0.1% in May 2026 compared to a 1.8% monthly increase a year prior. The average property value in England now stands at £292,000, a marked slowdown from the 4% annual growth recorded in April. Regional disparities are also becoming more pronounced, with prices in London falling by 3.7% since May 2025, while the North East has seen a 5.9% increase over the same period.
Commenting on the trends, Ben Nichols of RAW Capital Partners noted that local economic factors and supply-demand dynamics play a crucial role in determining house prices. Meanwhile, Zoopla's Executive Director of Research Richard Donnell pointed to weakening buyer activity, with 20% fewer buyer enquiries than a year ago and 7% fewer sales agreed, contributing to the slowdown in house price growth.
The implications for first-time buyers are significant, as slower house price growth might offer a glimmer of hope for affordability. However, high mortgage rates and deposit requirements remain major barriers to entry, making it difficult for many would-be homebuyers to get on the property ladder.