UK rent growth eased to 2.2% in October 2025 as more homes entered the lettings market, giving renters greater choice but offering landlords a moment to reassess pricing, yields and purchase timing following Zoopla’s latest data release pointing to calmer conditions – but not a soft market – heading into 2026.
Regional rental trends shift as balance returns
Demand for rented homes has dropped by a fifth over the past year, Zoopla reports, marking the lowest level since 2019. That slowdown reflects two seismic shifts: the sharp 78% decline in net migration since 2023, according to provisional ONS estimates, and a jump in first-time buyer purchasing activity as mortgage affordability has improved.
Notably, Zoopla expects a 20% rise in first-time buyer completions across 2025, and many of those stepping onto the ladder previously occupied rental stock. With that churn, landlords are now competing within a market holding 15% more available homes – with the average agency branch offering fourteen rental properties versus eight in 2022.
While this presents more pricing discipline, those holding homes in cheaper markets are seeing sizeable rent uplifts. Carlisle (8.1%), Chester (7.4%) and Motherwell (7%) lead the table, reflective of local affordability and headroom for growth.
UK rent growth outlook as letting periods lengthen
An often-overlooked indicator – time to let – tells a similar story. Properties are now taking an average of 17 days to secure a tenant, up 18% year-on-year and 42% longer than during the pandemic acceleration. Scotland remains the fastest at 14 days, while the West Midlands stretches to 19.
Longer marketing periods generally temper landlord price increases, slowing the pace of rent rises, a trend Zoopla expects to define 2026. London annual rental growth stands at just 1.6%, while the North East leads at 4.5%. Northern Ireland stands apart with 11% annual growth.
Richard Donnell, Executive Director at Zoopla, told investors the market has “made a big stride back towards normality”, arguing that although renters benefit from more choice, the cost of buying remains restrictive, which in turn keeps rental demand structurally supported next year.
Landlord mortgage strategy and investment positioning
Chestertons’ lettings head Adam Jennings strikes a pragmatic chord, noting the Budget-driven encouragement for first-time buyers and broader mortgage choice has cooled applicant numbers in some regions. Yet he warns that if the sales market improves meaningfully, some owners could break cover and dispose of rental stock – which may tighten availability and trigger renewed upward rent pressure.
Increasingly, landlords are weighing whether to acquire into softer conditions, refinance, or maintain existing holdings and wait for 2026 when Zoopla forecasts a 2.5% rent rise on new lets. As one Midlands-based agent recently remarked to us, “the autumn brought fewer bidding wars but a better calibre of applicant”, reinforcing the point that calmer does not mean weak – rather, more predictable.
For investors, slower tenant competition can mean reduced void risk through considered pricing and more realistic applicant assessment rather than rushed lettings. Many owners with mortgages may also feel lighter pressure, as modest cooling in rents still outpaces inflation in several regions. Northern Ireland, for example, commands a median rent of £854 – 11% higher than last year, offering a compelling yield narrative.
Editor’s view
The story here is less about slowdown, more about maturity. Markets breathe – supply comes back, demand eases, then investors reposition. If Zoopla is right and rental growth re-accelerates next year, 2025 may be remembered as a pause rather than a pivot. The open question is whether those eyeing disposals this winter hold their nerve – or whether an early exit tightens stock again and revives competition sooner than expected.
Author: Editorial team – UK landlord & buy-to-let news, policy, and finance.
Published: 10 December 2025
Sources: Zoopla Rental Index October 2025; ONS net migration estimates; Chestertons letting market commentary
Related reading: Rent growth forecast to rise 12% as market normalises, says Savills
