UK Rent Grew By 2.2% in 2025

Average advertised rents across the UK rose by 2.2% in 2025, marking a clear slowdown after several years of sharp increases. New figures show that while rents are still rising overall, pressure in the rental market has eased as tenant competition have cooled and more homes have come into the market.

According to the latest available data, rents outside London fell by 1.1% in the final quarter of last year. Average asking rents dropped by £15 to £1,370, marking only the second quarterly decline seen in the past five years. While modest, this fall highlights a shift away from the intense conditions that defined much of the post-pandemic rental market.

Over the full year, rents still finished £29 higher than in 2024. However, this represented the weakest end-of-year increase since 2018, underlining how momentum slowed as 2025 progressed.

Cheaper Buy-to-Let Mortgages Support Landlord Activity

Part of this easing appears to be linked to improved conditions for landlords. It has been noted that cheaper Buy-to-Let mortgage rates have encouraged some landlords to remain active in the market, helping to support a gradual rise in available rental stock.

Commenting on the figures, one property expert said that there remains a long-term shortage of rental homes, but improved mortgage affordability has helped stabilise the market. Greater availability, they noted, has reduced competition among tenants, creating a calmer environment than the one seen in recent years.

This shift is particularly noticeable for renters who have experienced intense competition in the past. With fewer tenants chasing each available property, the process of securing a home is becoming more balanced and predictable.

Looking ahead, experts expect rents to rise by around 2% in the coming year, suggesting that while growth is likely to continue, it will do so at a slower and more sustainable pace than before.

London Rents Slip As Regional Differences Widen

While national trends point to easing growth, conditions continue to vary significantly by region. In London, average advertised rents fell by 0.7% between October and December, declining by £20 to £2,716.

Over the course of 2025, London rents rose by just 0.8%, the slowest annual increase since 2020, when pandemic disruptions temporarily pushed prices lower. This made the capital one of the weakest-performing rental markets over the year.

Elsewhere, growth was also subdued in the North East, where rents rose by just 0.4%. In contrast, stronger increases were recorded in the North West, where rents climbed 3.6%, and in Yorkshire and The Humber, where they rose by 3.1%.

These differences reflect how local supply and demand conditions continue to shape outcomes, even as national pressures ease.

Supply Improves, But UK Rent Demand Remains Elevated

Supporting the slowdown in rent growth is a gradual improvement in rental supply. The number of homes available to rent is now 9% higher than a year ago, although it remains around a third lower than levels seen a decade ago.

Tenant demand has also softened from recent highs. On average, there were 10 enquiries per available property in 2025, down from 14 the year before. While this is still well above the pre-pandemic average of six enquiries seen in 2019, it represents a meaningful step towards balance.

Regional differences persist here too. London landlords received an average of seven enquiries per property, compared with sixteen across the North West and Scotland, highlighting how pressure remains uneven across the country.

Conclusion

Industry figures say these trends point to a rental market that is becoming less volatile after several turbulent years. Slower annual rent growth and small quarterly falls in some areas are beginning to offer relief to tenants who have faced sustained affordability pressures.

However, this moderation should not be mistaken for a full recovery. Despite recent improvements, rental supply remains below the level needed to meet long-term demand, and pressures are likely to resurface if availability tightens again.

As 2026 approaches, the data suggests the private rented sector is entering a more settled phase. While rents are still rising, the pace has cooled, competition has eased, and conditions are gradually becoming more balanced for both landlords and tenants.