The average advertised monthly rent in Britain, excluding London, surged to a record high of £1,385 in the third quarter of 2025, marking a 3.1% increase compared to the same period last year, according to property website Rightmove. In London, rental prices also hit a new peak, with the typical rent reaching £2,736, up 1.6% year-on-year. This continuing upward trajectory highlights the escalating pressures on the rental market across the UK.

Despite the rise in rents, the supply of rental homes saw a modest improvement. The number of available properties to rent was 9% higher than a year ago, although it remains 23% lower than in 2019, before the pandemic altered housing dynamics. Rightmove noted that this level of supply is the closest the market has come to pre-pandemic norms in the past four years, though overall availability remains restrained.

The rental market environment remains challenged by a combination of high mortgage costs and significant legislative uncertainties. The impending Renters’ Rights Bill and anticipated measures in the forthcoming autumn Budget contribute to a cautious atmosphere for landlords. Colleen Babcock, a property expert at Rightmove, highlighted that these factors complicate investment decisions, as landlords seek to ensure purchases remain financially viable amid regulatory ambiguity.

Daniel Fisher, head of lettings at John D Wood & Co, corroborated this view, describing the market as slower and more cautious due to limited capital growth and shifting tax rules. Nevertheless, he noted that these conditions carve out opportunities for well-capitalised landlords to expand their portfolios, as others may exit the market. This shifting landscape could also benefit tenants by broadening the choice of available homes.

The rise in rents contrasts with a previous trend noted in the fourth quarter of 2024 when Rightmove recorded a slight quarterly dip in rents outside London, marking the first decrease since 2019. However, by 2025, rents rebounded strongly, indicating renewed upward momentum despite earlier signs of market cooling. In London, rents have steadily climbed, with advertised prices continuing to set new records, further reflecting the persistent demand pressures in the capital.

Overall, the UK rental market in 2025 remains characterised by increasing costs for tenants alongside constrained and cautiously supplied options for renters. The interplay of high mortgage costs, complex legislative prospects, and cautious investor behaviour shapes a challenging yet dynamic market environment that demands close attention from both policymakers and industry stakeholders.

📌 Reference Map:

  • Paragraph 1 – [1] Irish News, [2] Evening Standard, [3] ITV News
  • Paragraph 2 – [1] Irish News, [2] Evening Standard, [3] ITV News
  • Paragraph 3 – [1] Irish News, [4] LBC
  • Paragraph 4 – [1] Irish News
  • Paragraph 5 – [7] Sharecast, [1] Irish News
  • Paragraph 6 – [1] Irish News, [2] Evening Standard, [3] ITV News

Source: Noah Wire Services