The average private rent in the UK rose to £1,335 in the 12 months to April 2025, up 7.4% year-on-year, according to provisional figures from the Office for National Statistics (ONS). While the rate of growth slowed slightly from March’s 7.7%, landlords are still seeing strong rental returns, especially in high-demand regions like the North East, where rents grew by 9.4%. Simultaneously, average house prices jumped 6.4% to £271,000 in the year to March 2025, offering landlords both capital growth and rental yield potential.
This double-digit demand pressure, coupled with constrained supply, has created a rental environment still firmly tilted in favour of landlords—despite some media narratives suggesting otherwise.
Tenant demand far outpaces supply
Nathan Emerson, CEO of Propertymark, underlined the ongoing pressure on the rental sector: “We continue to witness, on average, around ten applicants for every property available to rent and this is a situation that has broadly remained stagnated across the last five years.”
In Wales, rents have jumped by 8.7% year-on-year to £795, and in Scotland, they now average £999, up 5.1%. Northern Ireland is also following the trend, with a 7.8% rise taking the average rent to £843 as of February 2025.
“The reality is simple,” said Alex Upton, Managing Director of Specialist Mortgages & Bridging at Hampshire Trust Bank. “We still do not have enough homes to meet demand… that level of competition means pricing pressure remains firmly upward.”
This supports what many landlords have experienced on the ground: tenant queues, rapid lettings, and very little need for incentives or discounts.
Landlords well-positioned as house prices show resilience post-tax shift
While some anticipated a slump after the Stamp Duty threshold changes in April 2025, the opposite has occurred. Richard Harrison, Head of Mortgages at Atom Bank, explained: “The Stamp Duty deadline has clearly played a big role in the heightened level of house price growth… [but] it would be a mistake to assume that the return to previous levels will result in a drop in house prices.”
In England, prices climbed to an average of £296,000 (up 6.7% annually), and even more modest regions like Scotland and Wales saw uplifts of 4.6% and 3.6%, respectively.
Paresh Raja, CEO of Market Financial Solutions, added, “This data reflects significant growth… recent rate cuts and the improved monetary policy outlook mean that the growth… will become part of a longer, more enduring trend.”
And let’s not forget the lending environment. According to Richard Donnell at Zoopla, the stabilisation of mortgage rates is “enabling more first-time buyers to get on the property ladder.” But for many, ownership remains out of reach—pushing more people into the rental sector and extending the long-term opportunity for buy-to-let landlords.
Renter activity cools slightly
While the rental market may be showing early signs of stabilisation, Foxtons Lettings Director Gareth Atkins noted a 5% rise in property listings in April, with a modest 3% drop in tenant registrations. “This trend… shows the market is becoming less competitive and more accessible,” he said. Even so, most landlords will be unfazed—tenant demand remains historically high, and yields continue to track upwards in many regions.
Chetwood Bank’s Darrell Walker was more measured: “Brokers will increasingly work with clients who require additional support… lenders must remain focused on supporting market growth.”
With inflation hovering at 3.5% and another Bank of England rate cut likely, the environment is increasingly landlord-friendly. Investors are navigating the post-Stamp Duty shift with strategic confidence—rebalancing portfolios, choosing properties with long-term appeal, and working with brokers who understand the market’s new contours.
The latest ONS private rent and house prices, UK Statistical bulletin was published today.
