More Choice and Less Competition in the Rental Market

Rental conditions are the softest we’ve seen in around five years. Tenant demand is about 24% lower than this time last year, helped by reduced inward migration and easier mortgage access for first-time buyers who might previously have stayed in the rental sector. At the same time, available stock has grown by close to 20% as new investment returns and some properties that were for sale are being offered to let instead.

Increase In Supply
This increase in supply is a UK-wide theme, though it is less pronounced in London.

With more choice and less competition, rent growth has eased back. New-let rents are currently 2.4% higher year-on-year, the slowest rate since 2020 and a few city markets, including Leeds and Bristol, have already posted small falls as supply and demand realign.

Looking ahead, forecasts suggest moderation rather than reversal, with rents expected to end 2025 roughly 2–3% higher.

Key figures

• Average UK rent on new lets (July 2025, published Sept): £1,301
• Annual growth: 2.4%, the slowest pace in four years