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    Home/News/UK Rental Market Hits New Highs, But Signs Point to a Shifting Landscape

    UK Rental Market Hits New Highs, But Signs Point to a Shifting Landscape

    9 days ago
    Lettings
    UK Rental Market Hits New Highs, But Signs Point to a Shifting Landscape

    UK Rental Market Hits New Highs, But Signs Point to a Shifting Landscape
    Rightmove’s July 2025 Rental Trends Tracker reveals record rents, a more balanced market, and growing investor activity

    The UK rental market continues to evolve in 2025, with the latest Rightmove Rental Trends Tracker painting a picture of both record-high rents and a shifting dynamic between supply and demand.

    📈 Rents Reach New Peaks

    Average asking rents outside London have surged to an all-time high of £1,365 per calendar month, marking a 3.9% increase compared to the same period in 2024. London rents also hit a 15th consecutive record, now sitting at £2,712 per month, up 1.9% year-on-year.

    This continued rise in rental prices highlights the ongoing pressure on tenants, many of whom are seeing affordability stretched further each quarter.

    📊 A Look at the Longer-Term Trends

    Five years on from the start of the pandemic, the rental landscape has changed dramatically. The average new tenant today is paying over £400 more per month than they were in 2020 – a 44% increase in rents.

    By comparison, average earnings have risen by 36% over the same five-year period, indicating that rents have significantly outpaced wage growth.

    🏘️ Supply and Demand Begins to Balance

    There is a glimmer of relief on the horizon: the number of available rental homes has increased by 15% compared to last year. At the same time, tenant demand has dipped by 10%, which is easing competition for individual properties.

    Today, each rental listing receives an average of 11 enquiries – a marked shift from the intense competition seen during the pandemic years.

    ⏳ Longer Time to Let, More Price Reductions

    The time it takes to let a property has increased. On average, it now takes 25 days for a home to be marked as “let agreed” on Rightmove, compared to 21 days a year ago and just 18 days during the peak frenzy in 2022.

    Additionally, nearly a quarter (24%) of rental properties are now undergoing a price reduction during the listing period – the highest proportion since 2017. This may reflect both greater tenant selectiveness and landlords adjusting expectations in a cooling yet still elevated market.

    🏦 Buy-to-Let Activity on the Rise

    There is renewed momentum in the buy-to-let market. According to UK Finance, the total number of loans to property investors is up 17% this year compared to 2024. Notably, lending for new rental purchases has seen a 28% uplift, which could help bring much-needed stock into the market in the months ahead.

    📣 What This Means for Landlords

    While rents remain at historic highs, landlords are advised to stay competitive with pricing and focus on presentation. The slight cooling in demand and longer letting times suggest tenants now have more choice — and are taking it.

    At the same time, improving supply and investor activity may gradually ease pressure in some areas, especially for properties that fall short on quality or value for money.

    🏡 Looking Ahead

    The current market continues to offer strong returns for landlords, but also signals a more balanced and nuanced environment. With affordability under pressure and tenant expectations evolving, proactive management and market awareness will be key to continued success.


    Are you a landlord looking to stay ahead of the curve?
    Take a look at our expert lettings service here: 👉 https://www.sansomeandgeorge.co.uk/landlords

    From property marketing to tenant sourcing and full management, we’re here to help you maximise your rental returns with confidence.

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