Average rents rocket by 7.4% to £1,335 per month – ONS

Rents grew by 7.4% to reach £1,335 in the 12 months to April 2025, the Office for National Statistics (ONS) says.

This marks a slight slowdown from the 7.7% growth recorded in the year to March 2025.

In England, the North East experienced the steepest rental inflation at 9.4%, while Yorkshire and The Humber saw the smallest increase at 4%.

England’s overall rental growth of 7.5%, or £97, was slightly below the 7.8% recorded in March 2025 and well under the peak of 9.2% in November 2024.

In Wales, the £795 average rent reflected an 8.7% (£64) rise, a slight easing from the 8.9% growth in March 2025 and below the high of 9.9% in November 2023.

Scotland’s increase of 5.1% to £999 was influenced by recent price drops in Lothian, contributing to a slowdown from the 5.7% rise in March 2025 and a big decline from the 11.7% peak in August 2023.

Northern Ireland’s rental market also showed signs of cooling, with the 7.8% annual increase to £843 in February 2025 down from 8.2% in January 2025 and below the 9.9% high in April 2024.

House prices grew by 6.4%

The ONS is also reporting that UK house prices rose 6.4% to £271,000 in the year to March 2025, up from 5.5% the previous month.

England’s average reached £296,000, a 6.7% increase, while Wales saw a 3.6% rise to £208,000.

Scotland’s house prices climbed 4.6% to £186,000, and Northern Ireland’s surged 9.5% to £185,000.

Property sector reaction

Nathan Emerson, the chief executive of Propertymark, said: “Overwhelming demand within the rental sector continues to influence price increases for those who rent.

“We continue to witness, on average, around 10 applicants for every property available to rent and this is a situation that has broadly remained stagnated across the last five years.

“It is imperative that rental supply rises to meet the challenges of demand, especially as the UK population is estimated to further grow to within the region of 70 million people across the next five years.”

Richard Donnell, the executive director of research at Zoopla, said: “Rents continue to outpace house price inflation across the UK.

“The challenges of accessing home ownership due to higher mortgage rates have driven demand for rented homes higher, alongside high levels of migration for work and study.

“Rental inflation is starting to slow as mortgage rates stabilise, enabling more first-time buyers to get on the property ladder. The levels of migration are also slowing.”

Alex Upton, the managing director of specialist mortgages at Hampshire Trust Bank, said: “Rents continue to rise, and the reason why is clear.

“We still do not have enough homes to meet demand.

“Propertymark data shows an increase in available stock, but it is not enough to keep pace with tenant enquiries. That level of competition means pricing pressure remains firmly upward.

“There is a risk that the imbalance becomes even more severe in the months ahead.

“The Renters’ Rights Bill may prove to be the final straw for some smaller landlords, particularly those for whom property is not a full-time focus.”

Gareth Atkins, the managing director of lettings at Foxtons, said: “April’s rental market activity reflects a more balanced landscape for renters and landlords alike.

“A 5% rise in new property listings has helped ease some of the pressure seen in recent years, giving renters greater choice and more room to negotiate.

“The slight slowdown in applicant registrations – down 3% month on month – also indicates a shift in pace, which is typical of a market moving toward greater stability.

“This trend, alongside a dip in the average percentage of budget spent, shows the market is becoming less competitive and more accessible for many.”