UK house price growth eases while private rents surge to highest pace in months
Annual house price inflation in the UK slowed, with London seeing price declines, while private rents rose sharply, reaching a 3.8% year-on-year increase.
According to the ONS, the UK’s annual house price growth decelerated to 1.5% in June, with London registering a 3.3% fall for the eleventh consecutive month and the North East leading with a 4.9% rise. Northern Ireland’s average house price stood at £202,000 in Q2, up 9.2% year-on-year, amid recent stamp duty reforms. Meanwhile, private rents climbed to an average of £1,400 in August, a £52 (3.8%) increase over the previous year, marking the steepest rental price growth since December.
ONS housing chief Aimee North highlighted that the rental market’s strength offset the broader slowdown in house price inflation. Market commentators warned that rising mortgage rates and higher funding costs are pressuring borrowers, while landlords face a tight supply environment that keeps rental competition intense.
Why it matters
The diverging trends affect homeowners, renters and mortgage borrowers across the UK.
How this story developed
- Sep 3 Coventry Building Society to Raise Fixed Mortgage Rates for All Customers Starting Monday
- Sep 8 Average fixed‑rate mortgage figures have risen to 5.63% (two‑year) and 5.68% (five‑year) while house‑price growth turned negative in August.
- Sep 11 July 2026 data show the UK economy grew by 0.4%, beating expectations of no change, driven mainly by services and AI-related activity.
- Sep 11 Andy Burnham entered No 10 on 20 July.
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