This annual growth rate is down from 2%, in the 12 months to September 2025.

Average house prices increased to £292,000 (1.4%) in England, £211,000 (1.5%) in Wales, and £192,000 (3.3%) in Scotland, in the 12 months to October 2025.

In the rental sphere, average UK monthly private rents increased by 4.4%, to £1,366, in the 12 months to November 2025; this annual growth rate is down from 5% in the 12 months to October 2025.

Average rents increased to £1,422 (4.4%) in England, £820 (6.1%) in Wales, and £1,012 (3.3%) in Scotland, in the 12 months to November 2025.

In Northern Ireland, average rents increased to £871 (6.4%), in the 12 months to September 2025.

In England, private rents annual inflation was highest in the North East (8.4%), and lowest in London (2.8%), in the 12 months to November 2025.

Commenting on the latest numbers Hampshire Trust Bank managing director, specialist mortgages & bridging finance Alex Upton said: “While the pace of rental growth has slowed, 2025 still delivered significant increases, underlining how stretched the private rental sector remains. That pressure is not easing. The recent Budget has added to it, with the government’s own figures showing 2.4 million landlords will face higher taxes by the end of this Parliament. For some, that could be the point they call time on their portfolios.”

Upton pointed to the fact that regulatory change continued to build. “From energy standards to tenancy reform, landlords are being asked to adapt at speed, often without clarity. The Renters’ Rights Act will be another major shift in how property is owned and managed, and we are already seeing investors respond”.

She added that there was a clear move towards more complex asset types such as HMOs, semi-commercial units and mixed-use portfolios. “That shift is not just about chasing yield. For many, it is about finding a way to stay in a sector that is getting harder to navigate. Brokers are seeing it play out on the ground every day.”

House prices

On the latest ONS house price data Jackson-Stops chairman Nick Leeming said:”The numbers tell a simple story: the floor is holding, but the froth has gone. Reflecting the month before the Budget, today’s ONS figures confirm a market that has been subdued as many waited for fiscal clarity from the Chancellor, but importantly, house prices held their nerve.

“Market fundamentals keep the wheels turning with prices gently up on the year and remaining stable month-to-month, building a picture of quiet confidence even when under economic strain.

Leeming stressed that as we edged into the new year, it was important for sellers to continue to price competitively. “This is a precision market, with regional nuances and supply dynamics varying widely between postcodes, putting emphasis on sellers to read it correctly.

“For buyers, it is likely the Bank of England will reduce interest rates this week and fuel competitive mortgage offers, giving some more leverage and impetus to make their move in January. This is the window buyers have been waiting for – choice, leverage, and stability finally back on their side.”