Rent and house price inflation both fell in January, according to the latest figures from the Office for National Statistics (ONS).
ONS provisional estimates are that average UK monthly private rents increased by 3.5%, to £1,367, in the 12 months to January 2026.
This annual growth rate is down from 4% in the 12 months to December 2025.
Average rents increased to £1,423 (3.5%) in England, £826 (5.8%) in Wales, and £1,021 (2.6%) in Scotland, in the 12 months to January 2026.
In Northern Ireland, average rents increased to £875 (5.6%), in the 12 months to November 2025.
In England, private rents annual inflation was highest in the North East (8%), and lowest in London (1.1%), in the 12 months to January 2026.
Average UK house prices increased by 2.4%, to £270,000, in the 12 months to December 2025.
This annual growth rate is down from 2.8% in the 12 months to November 2025.
Average house prices increased to £292,000 (1.7%) in England, £215,000 (5%) in Wales, and £191,000 (4.9%) in Scotland, in the 12 months to December 2025.
But industry experts said a December dip was to be expected.
Roger Morris, group distribution director at Chetwood Bank for ModaMortgages and CHL Mortgages, said: “Today’s figures underline why context is so important when assessing headline data.
“With the usual two-month lag, these ONS figures reflect December’s market, which was dealing with the aftermath of the Autumn Budget and the seasonal slowdown ahead of Christmas. In that environment, a modest monthly dip is not surprising, particularly with annual growth still remaining in positive territory.”
Jeremy Leaf, estate agent and a former RICS residential chairman, says: “This is the most comprehensive snapshot of all the housing surveys as it includes approximately 40 per cent of cash as well as mortgages sales, showing a steady rather than spectacular improvement in prices.
“Although a little dated, it reflects the period just before and after the Budget so demonstrates considerable buyer and seller resilience at a time of economic uncertainty which we also noticed on the ground.
“Looking forward, December’s modest reduction in interest rates and the prospect of further cuts over the next few months have given the market a lift. However, the amount of stock available and likelihood of even more choice given the increasing number of appraisals, will keep any price increases firmly in check.”
