House prices
Of the possible causes we looked at, local house prices are the closest companion of rents. Between December 2019 and December 2024 the councils where buying got dearer fastest were, more often than not, the councils where renting did too (rank correlation 0.26). That holds after allowing for pay, population, migration, region and where rents started, and over the longer run from 2015 the link is stronger still (0.41).
That still doesn't make house prices the cause. Rents and prices both respond to the same local demand, so the likelier story is that they rise together for shared reasons rather than one pushing the other.
Frequently asked questions about house prices and rents
Do rising house prices cause rents to rise?
The figures don't show that. Between December 2019 and December 2024, councils where house prices rose fastest were more often than not the ones where rents rose fastest too (rank correlation 0.26). But rents and prices respond to the same local demand, so the likelier reading is that they move together for shared reasons rather than one pushing the other.
How strong is the link between house prices and rents?
Modest over 2019 to 2024 (0.26) and stronger over the longer run from January 2015 to December 2024 (0.41). It holds after allowing for pay, population, migration, region and where rents started. It is the closest companion of rents among the factors we looked at.
Which house price and rent figures are used?
Rents come from the ONS Price Index of Private Rents. House prices come from the UK House Price Index (HM Land Registry and ONS). Both are matched to 316 English and Welsh councils on April 2023 boundaries.
Does this mean I can predict my area's rent from house prices?
No. The link is an average pattern across many councils. It says little about what will happen in any one town, and a modest correlation leaves most of the variation in rent growth unexplained.