The average UK monthly private rent increased by 4%, to £1,368, in the 12 months to December 2025 according to the latest Price Index of Private Rents (PIPR) from the Office of National Statistics (ONS).

However, this annual growth rate is down from the 4.4% recorded in the 12 months to November 2025.

Average rents increased to £1,424 (3.9%) in England, £822 (5.7%) in Wales, and £1,018 (2.8%) in Scotland, in the 12 months to December 2025. Whilst in Northern Ireland, average rents increased to £873 (5.7%), in the 12 months to October 2025.

Alex Upton, Managing Director, Specialist Mortgages & Bridging Finance, Hampshire Trust Bank, said: “While the latest ONS data shows a slowdown in rental growth, the underlying pressure has not gone away. Demand remains strong, supply is still tight, and that imbalance continues to feed through into pricing. 

“Landlords are facing a growing list of considerations. The Renters’ Rights Act, combined with tax and cost pressures confirmed in the Budget, including changes to mortgage interest relief and dividend taxation, is prompting many to take a more strategic view of their portfolios. Some are moving into limited company structures, others are rebalancing into semi-commercial or mixed-use assets, and many are reshaping how their funding aligns with long-term plans. 

“The private rented sector cannot function without adequate supply. Tenants rely on good-quality homes, but that supply depends on investors being able to operate with clarity and stability. If the combined effect of regulation, taxation and cost becomes too great, we risk seeing more landlords exit and availability fall further.”

Average UK house prices increased by 2.5%, to £271,000, in the 12 months to November 2025, this annual growth rate is up from 1.9% in the 12 months to October 2025.

Average house prices increased to £293,000 (2.2%) in England, £209,000 (0.7%) in Wales, and £193,000 (4.5%) in Scotland, in the 12 months to November 2025.