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UK House Prices Cool to 2.6% Rise as Rents Climb 5.0%

Supply shortages keep the housing market resilient despite high borrowing costs.

Overview

  • Official figures show average UK house prices up 2.6% in the year to September 2025 to £272,000, slowing from 3.1% in August.
  • Average private rents rose 5.0% in the year to October to £1,360, easing from 5.5% a month earlier.
  • Price growth diverged regionally, with England at £293,000 (+2%), Wales at £209,000 (+2.7%) and Scotland at £194,000 (+5.3%) over the year to September.
  • In England, rental inflation was fastest in the North East at 8.9% and slowest in Yorkshire and The Humber at 3.8% in the year to October.
  • Market commentators highlight structural undersupply and easing inflation, with expectations that a potential December rate cut and the forthcoming Budget could influence activity into early 2026.