Landlord Knowledge - Home of the Savvy Buy to Let Property Investor

South Coast rent growth leads UK as landlords hold firm


England’s south coast has recorded the fastest rent growth in the UK, according to new figures from the Lomond Group, as landlords across the country maintain confidence despite regulatory changes under the newly enacted Renters’ Rights Act. Southampton, Portsmouth, and Worthing each saw rent rises of around 8% between July and September — the highest increase nationwide.

South Coast rents rise 8% as tenant demand stays high
While the average national rent dipped slightly to £1,461, down 5% from 2024, Lomond’s data shows strong regional variation. The south coast continues to outperform other areas, with Worthing rents rising to £1,276, fuelled by strong tenant demand and limited housing supply.

Smaller, well-maintained two- and three-bedroom homes remain the most popular, with affordability pressures pushing tenants away from pricier urban centres. Lomond’s report attributes much of the growth to shifting affordability trends and migration from larger cities.

By contrast, Yorkshire remains the UK’s most affordable region, with average rents at £978, offering landlords relatively high yields in proportion to property values.

Regional resilience as landlords adapt to new legislation
The Midlands also recorded a 5% annual rise in average rents to £1,300, significantly outpacing the national average increase of just 0.2%. In Manchester, rents climbed by 4% to £1,346, reflecting continued tenant demand despite wider cost-of-living concerns.

London, historically the fastest-moving market, saw more moderate growth of 4%, with the average rent holding at £2,652 — still more than double the national average. Lomond noted a rise in “accidental landlords” entering the market as sales slow, alongside a dip in buy-to-let investor activity as mortgage costs stabilise.

North of the border, Scotland saw a marginal 1% drop in rents to £1,348, but encouragingly, the number of landlords letting out properties jumped 38% year-on-year, following the end of the rent freeze. Lomond reported that presentation and energy efficiency are now key selling points, as buyers increasingly seek move-in-ready homes amid tighter budgets.

Confidence returns as landlords defy sell-off predictions
Predictions of a mass landlord exodus ahead of the Renters’ Rights Act have not materialised. Instead, Lomond’s report highlights a resilient sector, with professional landlords retaining and even expanding their portfolios.

The report also reveals a more informed tenant base — 30% of renters now ask about the Renters’ Rights Act during the application process, signalling growing awareness of how the changes affect tenancy agreements.

Ed Phillips, Group Chief Executive of Lomond, said:

“The private rented sector has witnessed the most significant legislative shift in history, so it’s promising to see extremely steady results in the lettings market across all regions. Whilst there was a slight dip in overall rental prices, lets agreed and valuations remained stable. Many landlords are actively expanding portfolios, supported by the lowest buy-to-let mortgage rates since August 2022.”

Editor’s view
The UK rental market has shown remarkable composure through legislative upheaval. Far from the “landlord exodus” some predicted, confidence remains strong — particularly in regions offering solid yields and tenant demand.

The south coast’s growth story demonstrates a clear truth: where demand stays high, the private rental sector thrives. As the Renters’ Rights Act begins to reshape expectations, proactive landlords who document compliance and optimise energy efficiency could be best placed to benefit from a more regulated but ultimately more sustainable market.

Author: Editorial team — UK landlord & buy-to-let news, policy, and finance.
Published: 10 November 2025

Sources: Lomond Group Q3 2025 Rental Market Report, Renters’ Rights Act 2025, UK Government housing data.
Related reading: Rental growth set to outpace house prices as investors exit market

 

RSS
Follow by Email
X (Twitter)