The UK housing market is showing signs of moderation, as both house prices and private rental growth slow down, according to the latest data from the Office for National Statistics (ONS).

---

Annual House Price Growth Hits New Low

In October 2025, UK house prices increased by 1.7% year-on-year, marking the smallest annual rise since September 2024. This figure represents a slowdown from the revised 2.0% increase reported for September. The deceleration reflects ongoing economic pressures, rising interest rates, and affordability constraints in the housing sector.

Housing analysts note that the slowdown could be attributed to higher mortgage costs, which are limiting demand for property purchases across the country. London and other major cities have seen particularly modest growth, as prospective buyers adjust to tightened lending conditions.

---

Private Rent Growth Also Slows

The private rental market is also experiencing cooling. According to the ONS, private-sector rental growth slowed to 4.4% in the 12 months to November, down from 5.0% in October, marking the smallest annual increase since June 2022.

The slowdown in rent growth reflects a combination of factors:

• Rising interest rates pushing landlords to pass on costs to tenants more cautiously.
• Increased supply of rental properties in urban areas.
• A gradual easing of post-pandemic demand pressures that had previously driven higher rents.

Industry experts predict that the private rental sector may continue to stabilize, though regional differences will persist, with London and the Southeast likely experiencing slower growth compared with northern regions.

---

Implications for Homebuyers and Renters

For prospective homebuyers, slower price growth may provide some relief amid rising borrowing costs, making property slightly more affordable. For renters, the slowdown in rental increases may ease monthly budget pressures, particularly for households in high-demand urban areas.

The latest data highlights a broader trend in the UK housing market: the post-pandemic boom is tapering, and both buyers and renters are adjusting to economic realities, including inflationary pressures and policy changes affecting interest rates.

---

Key Takeaways

• UK house prices rose 1.7% in October 2025—the smallest annual increase since September 2024.
• Private-sector rent growth slowed to 4.4% in the year to November, the lowest since June 2022.
• Economic pressures, higher interest rates, and affordability issues are contributing to the slowdown.
• London and major cities are seeing more modest growth than regional markets.
• The moderation could benefit buyers and renters by slightly improving affordability.