New data shows UK rents hitting yet another record high, but with a welcome slowdown in annual growth as more landlords re-enter the market and stock levels begin to recover. Rightmove reports average advertised rents outside London now stand at £1,365 per month, up £417 since 2020, but annual growth has eased to its slowest pace since the pandemic.
Tenant budgets stretched, but landlord supply helps ease pressure
The picture is a mixed one for landlords. On the one hand, rental values remain strong. On the other, tenants are reaching affordability limits—something that’s beginning to show in how long homes take to let and how often rents are reduced mid-marketing.
According to Rightmove, rents outside London rose 1.2% this quarter, while London saw its 15th consecutive quarterly record, with advertised rents hitting £2,712 pcm. Yet annual growth outside London is now just 3.9%, a marked cooling from the 2021–22 frenzy.
Colleen Babcock, property expert at Rightmove, said: “The big picture is that yearly rent increases continue to slow, which is good news for tenants. Supply and demand is slowly rebalancing towards more normal levels.”
Crucially for landlords, tenant competition per property is easing. The average listing now receives 11 enquiries, down from 16 last year, while the number of available homes to rent is 15% higher—led by the North East, where supply is up 33% year-on-year.
Megan Eighteen, President of ARLA Propertymark, comments: “Many landlords within the private rental market are grappling with substantial hikes in their overall costs, including increased taxes, unfavourable mortgage rates, and ongoing regulatory challenges. These factors are making property investment less appealing and potentially riskier. Consequently, this is exacerbating the disparity between supply and demand for housing, and we’ve seen a significant impact on rental prices, which vary regionally.
“It is clear to see that many landlords may now be struggling to justify their current or future property investments, especially if costs and the number of regulations continue to rise. It is crucial for all governments across the UK to recognise the vital role the private rented sector plays in accommodating the nation’s housing needs and provide urgent support to enhance the supply of homes while effectively lowering rent levels in the long term.”
Landlord investment picks up as lending figures turn positive
More landlords are buying again. According to UK Finance, the total number of buy-to-let loans is up 17% this year compared to the same period in 2024, with a 28% increase in loans for new rental purchases—a welcome boost for a sector that has seen widespread disinvestment.
This uptick in landlord activity could help stabilise tenant affordability pressures over the long term by bringing more rental homes back into circulation. Andrew Ralph, Lettings Managing Director at LRG (Leaders Romans Group), said: “What’s more notable is the rise of a new generation of professional, tech-savvy investors… the market is adapting, and while the challenges are real, the opportunities are still there for those taking a strategic view.”
Landlords still face void risks in certain segments, particularly with larger homes and HMOs. Alex Caddy, of Clarkes Estate and Letting Agency, noted: “A reduction in university intake for 2025 has left many HMOs unlet for the September start. Some landlords in this space are now pivoting to the general rental market, further swelling already high supply levels.”
Longer voids and price drops reflect a calmer, more competitive market
The average time to let a home has now risen to 25 days, up from 21 days last year, and 18 days during the post-lockdown peak in 2022. Nearly a quarter (24%) of rental listings see a price reduction before being let—the highest share since 2017.
This recalibration isn’t necessarily bad news for landlords, especially those with well-maintained, competitively priced stock. Andrew Ralph added: “Pricing correctly from the outset is key, and being quick to adjust in line with market response helps avoid unnecessary voids… tenant affordability is a key focus, and matching the right tenants to the right homes is more important than ever.”
From a strategic lens, many landlords are now factoring in longer tenancies, moderate rent growth, and portfolio resilience—focusing less on quick wins and more on long-term viability in a sector increasingly shaped by policy and economic headwinds.
Despite tenant demand easing slightly and rent growth cooling, 2025 is shaping up to be a more balanced year for landlords—particularly those with a long-term view and a willingness to adapt.
