UK rents continue to rise, landlords and tenants cautious

Average UK rents continued to rise as home listings slowed in the third quarter of 2025, analysis from property portal Rightmove showed on Monday.

Average monthly rents for homes outside London hit a "record" GBP1,385 during the quarter. This is 3.1% higher than the same period a year earlier.

For homes in the capital, the average rent was up 1.6% on-year at GBP2,376.

However, both in and outside of London, the rate of change annually was at its tamest since 2020, Rightmove said.

On a quarterly basis, rent increased by 1.5% outside the capital and by 0.9% for London homes.

Inner London asking rents advanced 1.4% from the year prior to GBP3,220. Outer London rents climbed 1.8% to GBP2,838.

Rightmoved noted that 9% more homes are available to rent compared with a year ago, which has helped moderate the rate of rent increases.

"While the number of available homes to rent is still 23% below this time in 2019, it's the closest the market has been to pre-pandemic levels of available supply for four years," the firm said.

However, the pace of new listings, only 1% ahead of last year, has slowed. Tenant demand "continues to cool" and is down 14% on-year, Rightmove added.

Rightmove pointed to the impact of a rumoured national insurance tax for landlords in the upcoming UK government budget on November 26.

Around one third of landlords indicated they were considering exiting the rental market, the portal operator said.

"The majority of landlords are looking to stay in market and even grow their portfolios," said Colleen Babcock, the portal operator's property expert.

"Sustained high mortgage costs mean landlords need to make sure purchases are viable, and uncertainty around legislation like the renters' rights bill and what may or may not be in the upcoming autumn budget isn't helpful when looking to make financial investments. Landlords who were considering selling up over the next year told us that legislation changes were their biggest source of frustration."

Rightmove's analysis showed that the cost of renting has risen to 44% of the average wage from 40% five years ago, while the average 20% deposit to buy a new home has increased to GBP45,374 over the last five years from GBP40,326.