UK house-price growth slowed to its weakest rate since March in August, while private rents continued to rise at a pace last matched at the end of 2025, according to the Office for National Statistics.
The latest figures show a split in the housing market: annual house-price growth has moderated, but rental inflation remains elevated.
The Office for National Statistics (ONS) reported that annual house-price inflation fell to 0.9% in August, down from 1.2% in July. It was the weakest annual increase since March.
Meanwhile, average private rents rose by 3.8% in the year to September. That rate was unchanged from August and matched the joint-highest annual increase recorded since December.
The data indicates that UK house prices remained higher than a year earlier, even as the pace of growth slowed. Rents, by contrast, continued to climb at a relatively strong rate.
House prices are rising more slowly
The ONS figures show that annual house-price inflation eased by 0.3 percentage points between July and August.
Although growth has weakened, the annual rate remains positive. The figures therefore indicate that UK house prices were still higher in August than they had been a year earlier; they do not show an annual fall in prices.
The slowdown may matter to prospective buyers and homeowners monitoring the market. However, the national annual rate does not show how prices are changing in individual towns, cities or regions. Local markets can move differently from the UK-wide trend.
Rent growth remains near its recent high
Private rents continued to rise at a faster annual rate than house prices.
The ONS recorded a 3.8% increase in average private rents in the year to September. The rate was unchanged from August and was jointly the strongest since December.
For tenants, continued rent inflation means that the cost of renting remains under upward pressure. However, the annual percentage change does not show how much an individual tenant’s rent has increased. Actual changes depend on the previous rent, the property and its location.
The figures also cover different periods. House-price inflation relates to August, while the rent measure covers the year to September.
Two different pressures in the housing market
The latest data presents a mixed picture for households.
Slower house-price growth may reduce the pace of further price increases, but it does not necessarily mean homes have become more affordable. Affordability also depends on property prices, mortgage costs, household incomes and the amount buyers need to borrow.
At the same time, rising private rents continue to put pressure on people who have not yet been able to buy a home.
The figures do not establish why house-price growth has slowed or what is driving rental inflation. They show the recent direction of the two measures, rather than the causes behind them.
UK figures do not describe Ireland’s housing market
The ONS statistics relate to the UK and should not be treated as evidence of equivalent trends in Ireland.
The two markets have different housing conditions and official measures. Any comparison with Ireland would require separate Irish data for house prices and rents over comparable periods.
For now, the ONS figures show that UK annual house-price growth has cooled, while rent inflation remains close to its recent peak.
