Average UK monthly private rents increased by 7.7% in the 12 months to March 2025, down from the 8.1% in the 12 months to February 2025 and was below the record-high annual rise of 9.1% in March 2024 according to the ONS.

Average UK house prices increased by 5.4% to £268,000 in the 12 months to February 2025, up from the 4.8% rise in the 12 months to January 2025.

Alex Upton, Managing Director at Hampshire Trust Bank, said: “The rental market remains under significant pressure, with demand continuing to outstrip supply. Letting agents are managing multiple applicants for every available property. While stock levels have seen some movement, competition remains fierce. Until that imbalance shifts, rental prices will continue to rise. 

“At the same time, the Renters’ Rights Bill is adding uncertainty for landlords. Proposed changes such as the removal of Section 21 may prompt some smaller or more cautious landlords to exit the market altogether, further reducing already stretched rental stock.

“We are also seeing a shift. Professional landlords are reassessing their portfolios with a long-term view, targeting properties that deliver tenant appeal and resilient yields. Refurbishment is playing a bigger role, helping to reposition or upgrade underused assets and bring more quality homes back into circulation.”

Regionally 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, whilst 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.

Nick Leeming, Chairman of Jackson-Stops, said: “We saw steady house price growth in the early months of 2025, driven by increased buyer activity ahead of the Stamp Duty Land Tax changes in April. 

“Global economic uncertainty is also playing a role, with more U.S. buyers turning to the UK for stability — particularly in markets like the Cotswolds, where we’re already seeing upward pressure on prices. While market volatility doesn’t directly determine sales, it does influence a buyer’s drive to purchase.  

“Across the Jackson-Stops network, completions jumped in February and instructions rose 16% year-on-year — a clear sign of a strong pipeline as we head into the Spring bounce. 

“With sub-5% mortgage rates still available, many buyers are feeling motivated to act.”