UK house prices continued a modest upward trend early in 2026, according to fresh data from the Office for National Statistics (ONS), while rental growth showed signs of easing after years
of sustained increases.
Property values rose by 1.2% in the year to February, a slight acceleration from the 1.0% annual increase recorded in January. The figures suggest a housing market that remains resilient despite affordability pressures and elevated borrowing costs.
In January 2026, average UK house prices were broadly stable on a monthly basis but still reflected subdued annual growth compared with previous years. Analysts note that higher mortgage rates throughout 2025 continued to weigh on demand, although early 2026 has brought tentative signs of renewed buyer activity, particularly in more affordable regions.
Meanwhile, the rental market appears to be cooling. Average monthly private rents increased by 3.4% in the year to March, down from 3.6% in the 12 months to February. This marks the slowest pace of rental growth in four years, offering some relief to tenants after a prolonged period of steep increases.
Economists say the slowdown in rent rises may reflect a combination of stretched tenant affordability and a gradual increase in available rental supply. However, rents remain significantly higher than pre-2022 levels, underscoring ongoing pressure in the housing sector.
Overall, the latest data paints a picture of a housing market in transition—house prices are inching upward, but at a measured pace, while rental growth begins to stabilise after years of sharp escalation.
