UK House Prices Stall While Private Rents Continue Rising, ONS Confirms

The housing market has hit a standstill. New figures from the Office for National Statistics reveal that average UK house prices remained completely unchanged in the 12 months to March 2026, sitting at £268,000 – a stark contrast to the modest growth seen just a month earlier.

But while house prices have flatlined, renters aren’t catching a break. Private rents continue their upward march, rising 3.5% to an average of £1,381 per month in April 2026. That’s up from 3.4% growth in March, suggesting rental inflation is actually picking up pace again.

The Numbers Behind the Stagnation

The ONS data paints a picture of a housing market in limbo. House price growth has slowed sharply from 1.2% annual growth in February 2026 to zero growth by March. This represents a notable shift for a market that had been showing weak but positive growth through late 2025 and early 2026.

Regional variations tell their own story. England’s average house price reached £290,000 in February 2026, while Wales sat at £210,000 and Scotland at £187,000. But even these figures now look outdated given March’s complete stagnation.

The contrast with rental markets couldn’t be starker. While house prices have ground to a halt, average monthly rents have climbed from £1,377 in March to £1,381 in April – a clear sign that demand for rental properties remains strong despite broader economic pressures.

Why the Split Between Buying and Renting

This divergence reflects the reality facing many households today. Higher interest rates since 2022 have made mortgages much more expensive, cooling buyer demand and putting a lid on price growth. But those same pressures have pushed more people into the rental market, keeping demand – and rents – rising.

The ONS figures are based on completed sales data from HM Land Registry and equivalent bodies across the UK, making them slower to publish but more full than lender-based indices. Other measures show slightly different averages – Nationwide reported £277,186 in March with 2.2% annual growth, while Halifax put prices around £299,000 to £301,000 in early 2026.

The Rental Reality Check

For renters, the 3.5% annual increase represents another squeeze on household budgets. The ONS rental data captures actual rents paid across both new and existing tenancies, not just advertised rates, giving a realistic picture of what tenants actually face.

This rental inflation comes despite government promises to reform the sector, including planned changes to Section 21 “no-fault” evictions in England. Limited rental supply, higher landlord costs including mortgage expenses, and strong tenant demand continue to drive rents upward even as the broader housing market cools.

Market Watchers Weigh In

Housing market forecasters had predicted modest price growth of 1-4% for 2026, driven by expectations of gradual interest rate cuts. The March figures suggest even these conservative predictions may prove optimistic.

The stagnation follows sharp increases in the Bank of England’s base rate, which have fundamentally altered mortgage affordability calculations for millions of potential buyers. While market expectations of future rate cuts have prevented a sharp price crash, they haven’t been enough to sustain growth.

Key Takeaways

• UK house prices remained unchanged at £268,000 in March 2026, down from 1.2% annual growth in February
• Private rents rose 3.5% to £1,381 monthly, showing rental inflation is accelerating while house prices stagnate
• The split reflects higher mortgage costs cooling buyer demand while pushing more people into an already tight rental market

What This Means for Kent Residents

Kent renters should prepare for continued pressure on housing costs, chiefly in commuter towns like Ashford, Maidstone and Dartford where London workers compete for properties. If you’re struggling with rising rents, contact Citizens Advice Kent for guidance on tenant rights and available support schemes through your local district council. For those hoping to buy, flat house prices might seem like good news, but saving for deposits becomes harder when rents keep rising – consider speaking to a mortgage adviser about current lending criteria and government first-time buyer schemes that might help bridge the gap.