The latest figures from the Office for National Statistics (ONS) show that average monthly private rents across the UK rose by 7.7%—an increase of £96—bringing the national average to £1,332 in the 12 months to March 2025. While still a significant rise, the annual rate of growth has eased slightly from the 8.1% recorded in February.
Regional Breakdown
- In England, rents rose by 7.8% to an average of £1,386.
- Wales experienced a sharper increase of 8.9%, reaching £792.
- Scotland recorded a more moderate 5.7% rise to £1,001.
- Northern Ireland, whose latest figures run to January 2025, saw rents rise by 8.2% to £838.
Within England, the North East led the regions with the highest annual rental inflation at 9.4%, while Yorkshire and The Humber recorded the lowest at 4.6%.
Sector Pressures and Landlord Sentiment
Commenting on the data, Propertymark Chief Executive Nathan Emerson highlighted the continued strain on the rental sector, citing an ongoing imbalance between tenant demand and housing availability. “We’re consistently seeing around 10 prospective tenants vying for each available rental property across the UK,” he noted.
Emerson also pointed to legislative headwinds, including regulatory changes that could impact landlord participation. “Over the past two decades, renting has grown in popularity, but without targeted support and investment, the sector risks falling short of demand.”
Alex Upton, Managing Director of Specialist Mortgages & Bridging at Hampshire Trust Bank, echoed these concerns, noting that letting agents are managing high volumes of applications per listing, despite some improvement in stock levels.
“Demand is still far outpacing supply, and until this gap closes, rental prices are likely to remain on an upward trajectory,” said Upton. He also flagged uncertainty surrounding the proposed Renters’ Rights Bill—particularly the potential abolition of Section 21—as a factor that may push smaller landlords out of the market, further tightening rental availability.
Shift Toward Professionalisation
Upton observed a trend toward greater professionalisation among landlords, many of whom are reviewing their portfolios with an eye toward long-term resilience. “We’re seeing increased investment in refurbishment and repositioning of underperforming assets to meet evolving tenant expectations and optimise yields.”
Source: Mortgage Finance Gazette
