The latest official private rental data show a market with steady growth transitioning by small margins, says the Office for National Statistics.
The figures also show that the rate of rent increases is moderating, but with marked regional differences.
House prices are also going up. Like rents, the rate is steadily slowing across the UK, with a 2.7% increase in May 2026, down from 3.9% in April, bringing the average UK home value to £271,000.
However, average London prices fell 3.7% year-on-year, marking the ninth consecutive month of annual values dropping in the capital.
Key rental market stats
| Location |
Average Monthly Rent |
Annual Change |
Key Detail |
| UK Total |
£1,388 (June 2026) |
+3.3% (+£44) |
Growth rate unchanged from May 2026 |
| England |
£1,446 (June 2026) |
+3.4% (+£47) |
Highest: North East (6.3%) | Lowest: London (2.2%) |
| Wales |
£843 (June 2026) |
+4.9% (+£39) |
Picked up from 4.7% in May |
Takeaways for landlords and investors
How and why the buy-to-let market is changing for landlords:
- Shift to income stability over capital appreciation. While average asking rents remain near record highs, the multi-year wave of 8–10% annual rent hikes has levelled off to around 3.3%. This shift favours landlords taking a longer-term capital appreciation strategy over short-term rapid rental gains.
- The north-south yield divide. The North East continues to lead both rent inflation (+6.3%) and capital gains (+5.9%), offering attractive gross yields. Conversely, London’s combination of slow rental growth (+2.2%) and declining house prices (-3.7%) reflects tighter affordability constraints on tenants and buyers.
- Mortgage and financing backdrop. UK CPI inflation slowed to 2.6% in June 2026, easing broader economic pressure. However, fluctuations in swap rates mean fixed-rate buy-to-let mortgage pricing has remained somewhat elevated, emphasising gross yield calculations for new purchases.
- Legislative impact and market structure. The ongoing impact of the Renters' Rights Act continues to shift buy-to-let demographics. Smaller private landlords are increasingly consolidating or exiting, while incorporated professional investors are acquiring assets in higher-yielding regional hotspots.
Read the full ONS housing market report
Buy-to-let yield comparisons
Based on recent ONS data and market transaction data, gross rental yields across the UK range from 3.5% to over 8%, depending heavily on the region and asset type.
Because gross rental yield is calculated as (annual rent ÷ purchase price) × 100, regions with lower entry house prices and resilient tenant demand offer substantially higher gross yields.
The highest yields tend to be in the North, where homes are cheaper, while yields in and around London are affected by higher house prices.
