UK Rent Trends Show Overall Stability

Recent data from SpareRoom indicates that the average rent across the UK has largely stabilised, with a modest 0.5% year-on-year increase. London rents have slightly decreased by 0.9%, now averaging £985 per month. Despite this overall steadiness, the report draws attention to marked rent rises in specific towns and cities, particularly across northern England, the Midlands, and parts of Scotland.

Affordability Remains a Critical Concern

Matt Hutchinson, director at SpareRoom, emphasises that while rents may be stabilising, this does not equate to affordability improvements for many renters. “Those navigating the market today will tell you affordable accommodation is scarce and only meaningful decreases would make life easier, so the fact rents are stabilising is far from a silver lining,” he said.

He highlights that many tenants are at breaking point, with some spending up to half their income on rent. The high cost of living is pushing renters towards traditionally more affordable areas, which risks those areas becoming unaffordable in turn. Hutchinson advocates for a focused effort to increase rental housing supply as the most effective response to the ongoing housing crisis.

Significant Rent Increases in Northern England

The SpareRoom report identifies nearly half of the towns and cities with rent increases exceeding 5% year-on-year in the final quarter of 2025 as located in northern England. For example, Keighley in West Yorkshire, historically known for affordable rents, has seen room rents rise by 14% to an average of £600 per month.

In Merseyside, Bootle, once the cheapest place to rent in the UK, has been surpassed by Burnley in Lancashire, which recorded the highest year-on-year rent increase nationwide. Bootle’s average room rent has risen 18% to £527 per month.

Midlands and Scotland Also Experience Notable Rises

In the Midlands, Stourbridge and Wolverhampton are leading rent growth with increases of 17.7% and 9.6% respectively. Stourbridge’s average room rent now stands at £649 per month, slightly higher than Birmingham’s £618, where rents have fallen by 2%. Wolverhampton remains comparatively affordable, with rents £65 below Birmingham’s average.

Although Scotland’s average rent dropped slightly by 0.2% in Q4 2025, some cities such as Perth (+7.4%), Paisley (+5.7%), Livingston (+6.7%), and Kirkcaldy (+6.1%) have seen significant rent increases.

Despite these rises, rents in northern towns and cities remain lower than in major Scottish cities like Edinburgh (£778) and Glasgow (£690).

Implications for Landlords and Letting Agents

For landlords and letting agents operating in northern England and the Midlands, these rent increases may present opportunities to adjust rental values in line with market trends. However, the broader context of affordability pressures means that maintaining balanced rental levels and supporting tenants is critical to sustaining tenancies.

The call for increased housing supply underscores the importance of development and investment in the private rented sector to meet demand and alleviate cost pressures. Landlords should be aware of shifting tenant demographics as people move from more expensive urban centres to traditionally affordable towns, potentially affecting demand patterns.

Conclusion

While the UK average rent shows signs of stabilisation, regional disparities reveal ongoing challenges in affordability and supply. The significant rent rises in northern England and parts of Scotland highlight the need for targeted housing policies and market responses to support both tenants and landlords in these areas.

Suggested internal link anchors

• rent increases in northern England
• affordability pressures
• private rented sector
• housing supply
• tenant income and rent ratio
• regional rent trends
• letting agents market insights
• landlord rental values
• housing crisis solutions
• tenant demographics

TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/