Encouraging News for Renters in the UK

Rental conditions have softened to their most balanced level in about five years. Tenant demand is around 24% lower than this time last year, largely due to fewer people moving to the UK and easier mortgage access for first-time buyers who might otherwise have remained in rented homes. At the same time, the number of available properties to let has risen by nearly 20%, helped by new investment in the sector and some sellers choosing to rent out instead.

More homes on the market

This increase in supply is being seen right across the country, though it’s a little less pronounced in London.

With more choice and less competition between tenants, rental growth has naturally eased. Rents on new lets are up 2.4% year-on-year, the slowest rise since 2020, and a few city markets such as Leeds and Bristol are already seeing small corrections as they settle into new supply and demand levels.

Looking ahead

The outlook is steady rather than negative. Forecasts suggest rents will rise by a modest 2–3% by the end of 2025, marking a return to more sustainable growth after several fast-moving years.

Key figures

• Average UK rent on new lets (July 2025, published Sept): £1,301

• Annual growth: 2.4% – slowest in four years

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