Rent Rises as House Prices Hold Steady 2025
Rent rises, and house prices are holding steady despite uncertainty in the housing market injected by Budget tax fears and the Renters Rights Act passing into law.
Average monthly buy-to-let rents climbed 5 percent, to £1,360 in the year to October - slightly less than the 5.5 percent rise reported in September by the Office for National Statistics (ONS).
The rise was the lowest monthly increase since October 2022.
In England, private rents rose the most in the North East (+8.9%) and the least in Yorkshire and the Humber (+3.8%).
The ONS also quoted that average house prices increased by 2.6 percent to £272,000 in the year to September 2025, down from 3.1 percent in the 12 months to August.
The Royal Institution of Chartered Surveyors (RICS) September UK Residential Market Survey reported that new buyer enquiries were falling for the third successive month. Also, most parts of the UK are now seeing a decline in new buyer demand.
How rents and house prices have changed
Rent rises across England - October 2025
Rents rose in every English region in the year to October.
The highest growth rate was 8.9 percent in the North East.
| Region | Annual percentage change |
|---|---|
| North East | 8.90% |
| North West | 6.50% |
| East of England | 5.90% |
| South West | 5.90% |
| East Midlands | 5.90% |
| West Midlands | 5.20% |
| England | 5.00% |
| South East | 4.40% |
| London | 4.30% |
| Yorkshire and The Humber | 3.80% |
Source: ONS
House prices across England - September 2025
House prices rose in every English region except London in the year to September.
House prices dipped 1.8 percent in the capital - the only region to see a price drop - a reverse from a 0.8 percent increase in August.
| Region | Annual percentage change |
|---|---|
| Yorkshire and The Humber | 4.50% |
| East Midlands | 3.70% |
| North East | 3.50% |
| North West | 3.40% |
| West Midlands Region | 2.60% |
| East of England | 2.30% |
| England | 2.00% |
| South East | 0.90% |
| South West | 0.90% |
| London | -1.80% |
Source: ONS
Buy-to-let rents for local areas
Average rent was highest in Kensington and Chelsea, London (£3,633) and lowest in Dumfries and Galloway, Scotland (£531), in October.
Excluding London, the area with the highest average rent in October was Oxford (£1,915).
Source: ONS
Local buy-to-let rents by property type
Detached homes command the highest rents - an average of £1,550 a month. Flats and maisonettes rent for the lowest average rent - £1,331 a month, says the ONS.
Four-bedroom homes rent for £2,027 monthly, with one-bed homes attracting the lowest rents - £1,103 monthly.
Read the HM Land Registry monthly data report for more on house prices.
Subscribers get full access to exclusive content, including forms, articles and discounts, plus our time saving Tenancy Builder tool.
Signup for our free weekly digest and get the latest news and guidance straight to your inbox (some content requires a paid subscription).