House Price And Private Rental Growth Slows Pace: ONS
UK house price growth continued to ease in the year to October 2025, according to the latest figures from the Office for National Statistics (ONS), indicating a housing market that is stabilising rather than accelerating.
Average UK house prices increased by 1.7% over the 12 months to October 2025, taking the typical property value to £270,000. This represents a slowdown from the 2% annual growth rate recorded in September, reflecting softer momentum across much of the market.
At a national level, price growth remained positive but varied by country. In England, average house prices rose by 1.4% over the year to reach £292,000. Wales saw prices increase by 1.5% to £211,000, while Scotland recorded stronger annual growth of 3.3%, with average prices reaching £192,000.
The data suggests that while demand has moderated, prices have remained broadly resilient, supported by limited housing supply and steady underlying demand.
Rental growth moderates across the UK
The latest ONS data also shows a slowdown in private rental growth, although rent levels remain historically high.
Average UK monthly private rents increased by 4.4% in the 12 months to November 2025, taking the typical rent to £1,366. This compares with an annual growth rate of 5% in October, marking a further easing in rental inflation.
In England, average rents rose by 4.4% over the year to £1,422. Wales recorded stronger growth of 6.1%, with rents reaching £820, while Scotland saw rents increase by 3.3% to an average of £1,012.
For Northern Ireland, the most recent figures, covering the year to September 2025, show average rents increasing by 6.4% to £871.
Within England, rental inflation continued to vary significantly by region. The North East recorded the highest annual increase at 8.4%, while London experienced the slowest growth, with rents rising by 2.8% over the year to November. This divergence reflects affordability pressures in the capital alongside stronger demand in some regional markets.
Pressure builds on the private rented sector
Although rental growth has slowed, pressure within the private rented sector remains elevated. Rising operating costs, higher borrowing expenses, and recent fiscal measures are increasing financial strain on landlords.
Government estimates indicate that a substantial number of landlords are expected to face higher tax liabilities over the course of the current Parliament. For some, this may influence decisions around portfolio size or continued participation in the rental market.
Regulatory change is also contributing to uncertainty. Ongoing reforms covering energy efficiency standards, tenancy rules, and property management requirements are increasing compliance demands, often alongside limited clarity on implementation timelines.
Proposed tenancy reforms represent a further structural change, affecting how rental properties are owned, financed, and managed. Market evidence suggests that investor behaviour is already adjusting in response.
Shift towards more complex property investments
As conditions evolve, some landlords are moving away from traditional buy-to-let properties towards more complex asset types, including houses in multiple occupation, semi-commercial properties, and mixed-use portfolios.
This shift reflects not only yield considerations but also efforts to remain viable in a sector that is becoming more regulated and operationally demanding. Demand for specialist mortgage advice and tailored finance solutions has increased as a result.
House prices remain steady amid subdued activity
The latest house price data reflects a period of subdued market activity, with many buyers and sellers having delayed decisions while awaiting greater clarity on economic and fiscal policy.
Despite this pause, prices remained broadly stable on a monthly basis and continued to show modest annual growth, pointing to a market supported by fundamentals rather than short-term speculation.
Employment levels, household formation, and constrained supply continue to underpin prices, even as affordability pressures limit the pace of growth.
Outlook: stability over acceleration
As the market moves into the new year, accurate pricing is becoming increasingly important. Conditions vary widely by region and postcode, placing greater emphasis on local market dynamics.
For buyers, expectations of lower interest rates may support confidence and improve mortgage affordability at the margins. For sellers, realistic pricing remains key to maintaining transaction momentum.
Overall, the latest ONS figures suggest the UK housing market is entering a phase of adjustment and stabilisation, with slowing growth but continued resilience across both sales and rental sectors.
