UK Housing Market & Rental Trends
Rental Price Growth Outside London
The average rental price in the UK (excluding London) increased from £950 in 2019 to £1,341 in 2024, marking a steady rise in demand. In Q4 2024, rental prices fell slightly by 0.2%, the first decline since 2019. However, rental costs remain 4.7% higher than the previous year.
House Price Trends Outside London
In November 2024, the average house price in England rose by 3.0% to £306,000, indicating continued growth in property values.
Source: ONS (Office for National Statistics)Social Housing Demand & Waiting Lists
As of March 2023, around 1.29 million households were on local authority waiting lists for social housing in England, marking a 6% increase from the previous year. Meanwhile, only 252,000 households were allocated social housing between April 2022 and March 2023. In London alone, 336,366 households remain on social housing waiting lists.
Future Housing Market Projections
According to a Reuters poll, UK home prices are expected to rise over the next two years, outpacing inflation but improving affordability due to lower borrowing costs.
2024
+2.5%
2025
+3.0%
2026
+4.0%
Consumer inflation is expected to fall to 2.3% in 2025 and 2.0% in 2026. Supporting home affordability (Reuters). Additionally, Trading Economics projects that the United Kingdom House Price Index will trend around 545.67 points in 2026 and 568.59 points in 2027. Meanwhile, UK rental prices are projected to increase by 6.0% in 2025 due to high demand and limited supply
