Average advertised rents across Britain increased by 2.2% in 2025, marking a slowdown in rental growth as tenant competition eases and more properties become available. This moderation in rent rises is significant for landlords as it reflects a more balanced rental market, with implications for rental income and tenant demand moving forward.

Overview of Rental Growth in 2025

According to data from Rightmove, the average asking rents across the UK rose by 2.2% during 2025. However, this growth rate represents a cooling compared to previous years, driven by a combination of increased rental supply and reduced tenant competition. Outside London, asking rents actually fell by 1.1% in the final quarter of the year, dropping by £15 to an average of £1,370. This quarterly decline is notable as it is only the second such fall in five years.

Despite the quarterly dip, rents finished the year £29 higher than in 2024, which is the weakest end-of-year increase since 2018. For landlords, this suggests that while rental income is still growing, the pace of growth is slowing, potentially signalling a shift towards a more stable rental market.

Impact of Cheaper Buy-to-Let Mortgages

Rightmove’s property expert Colleen Babcock highlights that landlords are benefiting from cheaper buy-to-let (BTL) mortgage rates, which may be encouraging more property owners to bring homes to the rental market. This increased supply is helping to ease tenant competition, which had been intense in recent years.

For landlords, the availability of lower-cost finance can improve profitability and encourage investment in rental properties. Meanwhile, tenants are likely to experience a more balanced market, with greater availability and less competition than during the peak of the rental demand surge.

Babcock notes: “Existing tenants or those looking to rent their own home for the first time are likely to experience a much more settled and balanced market than a few years ago, when the competition to secure a home was frenetic.” This shift could lead to longer tenancy durations and reduced void periods, benefiting landlords managing their portfolios.

Regional Variations in Rent Changes

London saw a slight decline in average advertised rents, with a 0.7% fall between October and December 2025, reducing average rents by £20 to £2,716. Over the full year, London rents increased by just 0.8%, the slowest annual growth since 2020, when the pandemic caused rental prices to drop.

Elsewhere, regional differences were apparent. The North East recorded the smallest increase at 0.4%, while the North West and Yorkshire and The Humber experienced the strongest growth at 3.6% and 3.1% respectively. These regional disparities highlight the importance for landlords to monitor local market conditions closely when setting rents or considering new investments.

Supply and Demand Dynamics

The number of homes available to rent is now 9% higher than a year ago, although it remains a third lower than a decade ago. Tenant demand has softened from recent highs, with an average of 10 enquiries per available property in 2025, down from 14 in 2024. However, this remains above the pre-pandemic level of six enquiries per property seen in 2019.

London landlords continue to experience lower tenant interest, averaging seven enquiries per property, compared to sixteen enquiries per property in the North West and Scotland. This variation underscores the differing market pressures across the country and the need for landlords to adapt their strategies accordingly.

Market Balance and Future Outlook

Propertymark’s chief executive Nathan Emerson describes the rental market as gradually moving towards a more balanced position after years of volatility. He comments: “Slower annual rent growth and modest quarterly falls in some areas will offer some relief to tenants after a prolonged period of sharp increases.”

However, Emerson cautions that “moderation should not be mistaken for recovery,” noting that rental supply remains below the level needed to meet long-term demand. For landlords, this suggests that while the market is stabilising, there remains potential for sustained demand for rental properties.

Rightmove expects rents to rise by a further 2% in 2026, supported by a healthier balance between supply and demand than during the pandemic years. Landlords should consider these trends when planning rent reviews and portfolio management.

Looking Ahead: Trusted Partners Hub Launch

The Landlord Association (TLA) is launching a new Trusted Partners Hub in Q1 2026. This platform will feature verified and approved service providers selected to support landlords, tenants, and property management businesses. Service providers in legal, trades, insurance, financial, mortgage, tenant screening, and other sectors are invited to register their interest to join the hub. This initiative aims to provide landlords with reliable resources to assist in managing their properties effectively.