Rents outside of London continued their upward trend in the third quarter of 2025, reaching a new record of £1,385 per calendar month (pcm). This represents a 3.1% increase compared with the same period last year, highlighting ongoing pressure on tenants in regional markets.

In London, average advertised rents also climbed to record levels, reaching £2,736 pcm. Despite this, the annual increase in the capital was more moderate at 1.6%, reflecting slower growth compared with regions outside the capital.

The total number of homes available to rent has been gradually approaching pre-pandemic levels, signalling a stabilisation in the market. However, the pace of new rental properties coming onto the market has noticeably slowed, creating a tighter supply.

Currently, there are around 9% more rental properties available compared with this time last year. While this represents an improvement, the total supply still remains 23% below 2019 levels, marking the closest the market has come to pre-pandemic availability in four years.

New rental listings entering the market have only increased by 1% year-on-year, the slowest growth recorded in 2025. This limited addition of new properties contributes to ongoing competition among tenants.

Landlords are now carefully considering multiple factors that could impact their rental income. Recent stamp duty changes, potential tax adjustments in the Autumn Budget, and the forthcoming Renters’ Rights Bill are all influencing investment decisions.

Affordability continues to be a major concern for tenants. Even though average wages have risen by 5% over the past year—outpacing rent increases—the cost of renting still consumes 44% of the average salary, up from 40% five years ago.

First-time buyers are also facing increasing financial pressure. A typical 20% deposit for a new home has risen by roughly £5,000 over the last five years, making homeownership more difficult and potentially keeping more people in the rental market.

Buy-to-let landlords are navigating a challenging environment as well. According to UK Finance, the average interest rate for new buy-to-let mortgages now stands at 4.87%. While this is lower than last year, it is nearly double the 2.93% rate seen before the mini-Budget of 2022.

This combination of higher borrowing costs, legislative changes, and a slowing supply of new rental properties is creating a delicate balance between rental affordability and landlord investment returns.

Limited supply and strong demand mean tenants are competing for available homes, particularly in popular regional markets where rent increases are most pronounced. This competitive environment is keeping upward pressure on rental prices.

In London, while the growth rate for rents is slower, the capital remains the most expensive rental market in the UK. Affordability remains a key challenge for both renters and new entrants to the housing market.

For landlords, careful financial planning is essential to maintain profitability. Decisions around whether to invest in additional properties, raise rents, or absorb higher mortgage costs are all influenced by evolving regulations and market conditions.

The rental market is expected to remain tight in the coming months, as new legislation and economic pressures shape the behaviour of both tenants and landlords. Affordability challenges may continue to constrain demand in some regions, even as supply slowly increases.

Overall, the rental sector is facing a complex environment, with rising rents, slowing supply, and ongoing legislative changes. Both tenants and landlords will need to adapt carefully to maintain stability and ensure a sustainable rental market in 2026.

Here’s a regional rental market table excluding Greater London based on the latest Rightmove Rental Price Tracker data (Q3 2025), showing average advertised rents and whether rents are stabilising or rising across UK regions outside the capital. This is intended to help illustrate where rents stand and how they’re trending outside London. (rightmove.co.uk)

Where official regional averages are not directly reported by Rightmove, directional figures are based on broader patterns from Q3 2025 data and related regional examples from the tracker.

Key takeaways (excl. London)

• The national average rent outside London reached a new record of £1,385 pcm in Q3 2025, up about 3.1% compared with a year earlier, showing rents continue to rise albeit at a steadier pace than during the earlier pandemic years. 
• Localised data from Rightmove’s rental trends show stronger growth in certain areas — for example, parts of the North West and South West saw double‑digit percentage increases in average advertised rents year‑on‑year. 
• Even with rising rents, the number of homes available to rent has increased, which has helped moderate rent growth rates. The total supply outside London is still below pre‑pandemic levels but closer than at any point in recent years. 
• Tenant demand nationally has eased, which is reflected in both slower rent rises and longer listing times in some regions. 

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