Private rents up 3.3%, house prices up 2.7%: ONS – Mortgage Strategy

The average monthly UK private rent rose by 3.3%, to £1,388, in the 12 months to June, the Office for National Statistics (ONS) revealed.
The data found that the annual growth rate remained unchanged from the 12 months to May 2026.
The average rent rose by 3.4% to £1,446 in England, by 4.9% to £843 in Wales, and by 1.3% to £1,012 in Scotland, in the 12 months to June.
In Northern Ireland, average tax rose by 2.9% to £877 in the 12 months to April.
In England, annual private rent inflation was highest in the North East at 6.3%, and lowest in London at 2.2% over the past 12 months.
The data also found that average UK house prices rose by 2.7%, to £271,000, in the 12 months to May.
The annual growth rate fell from 3.9% in the 12 months to April.
The ONS says the fall in UK house prices in the inflation year is due to a base effect from a small monthly price increase in May 2026 and a large monthly increase in May 2025, following the April 2025 Stamp Duty changes in England and Northern Ireland.
Average house prices rose by 2.3% to £292,000 in England, by 4.2% to £215,000 in Wales, and by 4.4% to £196,000 in Scotland, in the 12 months to May 2026.
All figures are provisional estimates.
Saffron for Intermediaries national sales manager Lee Williams says: “June’s figures suggest that the housing market has continued to show resilience despite economic and political changes.”
“With Andy Burnham taking office this week as Prime Minister, the market will certainly be watching how the new government handles housing and the wider economy.”
“While affordability remains a challenge, demand remains strong, supported by continued competition between lenders and a steady flow of buyers. With housing construction still stalled in many parts of the country, upward pressure on prices continues.”
“We will now look at next week’s Bank of England interest rate decision and what it means for borrower confidence in the coming months.”
Meanwhile, Zoopla’s chief executive, Richard Donnell, comments: “Political change, the World Cup, a scorching summer and high mortgage rates have impacted the housing market this summer.”
“Zoopla’s most recent data shows 20% fewer buyer inquiries than last year and 7% fewer sales agreed. This comes as annual house price growth in the ONS index has already slowed to 2.7% in the 12 months to May. We expect activity to continue in the autumn as the outlook improves.”
Commenting on the rental figures, former RICS residential chairman Jeremy Leaf added: “The performance of rental markets remains remarkably strong.
“In our offices, we have noticed a fair number of existing landlords playing the waiting game to see if rents rise enough to justify living in this sector. Demand is still strong but quality tenants are becoming scarce.”
“The biggest concern is the lack of a new breed, small or large, that will hire homeowners who are ready to take over their property.”



