UK house price growth moderated at the end of last year, while rental inflation also softened, according to new data from the Office for National Statistics. The average UK property price stood at £270,000 in December, up 2.4% year-on-year, easing from November’s 2.8%. Rental growth also stabilised to 3.5% annually in January. Regional performance remained mixed, with northern England continuing to outperform while London recorded a modest decline.
- UK house prices averaged £270,000 in December
- England rose 1.7%, Wales 5.0%, and Scotland 4.9% annually
- The North East, North West and Yorkshire and the Humber rose 4.6%, 4.5% and 3.3%
- UK private rents increased to £1,367 in January
- Average rents reached £1,423 in England, £826 in Wales and £1,021 in Scotland
Original article source: Sharecast
What this data reveals is a market settling into a more measured and sustainable rhythm after several years of sharp movements. At 2.4% annual growth, house prices are still moving forward, just at a steadier pace. That matters as stability supports confidence – particularly for long-term investors who prioritise consistency over short-term highs.
On the regional overview, London recorded a modest annual dip. Northern regions also continue to deliver stronger percentage growth. This supports a structural change that has been building for years – capital is increasingly flowing toward cities where affordability, regeneration and rental demand combine to create attractive yield profiles.
Rental growth easing to 3.5% is also a sign of normalisation rather than slowdown. After sustained rental pressure across the UK, a stabilising phase suggests a market adjusting to affordability constraints while remaining fundamentally undersupplied. Rents remain historically high, and regional variation continues to present opportunity.
The market is settling into a balanced phase – not overheated, not distressed – offering a more predictable and strategically favourable backdrop for investors.
Periods of moderated growth often provide clearer entry points and improved negotiation conditions, particularly in areas where long-term fundamentals remain intact. The underlying drivers of UK property – limited housing supply, population growth and sustained rental demand – have not shifted.
