- Average rents hit new highs, but growth is slowing — this is the smallest increase from January to March since 2020, as more landlords reduce asking prices
- The number of available homes to rent is improving, with 18% more year-on-year, while tenant demand has eased slightly
- Competition is still strong, but easing — average enquiries per rental property are down, giving some tenants more room to negotiate
Outside of London, average asking rents hit a new record high from January to March, reaching £1,349 a month — a 0.6% jump since the previous quarter (October – December 2024). However, this is the smallest increase we’ve seen in at the beginning of the year since 2020, which could mean rent rises are steadying.
With more homes coming onto the market and rent increases slowing down, tenants may find a little more breathing room — and possibly a bit more bargaining power — as we move through the rest of the year.
In London, rents are also still edging up, but by just £3 this quarter, to £2,698 a month. That’s another record, but again, the pace has cooled compared to the steep climbs of the last few years.
Take a look at all the insights in our latest Rental Price Tracker.
What’s changed in the rental market in 2025?
While rents have risen, there have been some positive changes in the number of homes available. There were 11% more new rental listings in March compared to the same time last year, and overall, the total number of rental homes available is now 18% higher than it was a year ago.
At the same time, tenant demand is easing slightly. There were 7% fewer people looking to rent compared to March 2024 — possibly because more first-time buyers are getting on the ladder, with agreed sales in that sector up 7% on last year.
Each rental property is now getting around 12 enquiries on average, down from 16 this time last year. That’s still double what we saw pre-pandemic (just 5 in early 2019), but it does suggest the frenetic market we’ve seen in the past few years is starting to ease.
And interestingly, 25% of listed rental homes have had their prices reduced — the highest proportion since 2018. This reflects both a cooling in demand, and the fact that many renters have already reached an affordability ceiling.
Our property expert, Colleen Babcock, says: “The rental market’s still busy — and in some parts of Britain, it’ll feel even busier than others. But it’s great news for tenants that the overall balance between the number of rental properties available, and the number of people looking to rent a home, is improving. That’s starting to influence pricing too, with rent increases slowing down and more landlords dropping their asking prices.”
Why are rental market trends changing?
Several things have been helping to boost rental supply. New buy-to-let mortgage loans jumped 32% at the start of 2025, compared to last year, which is helping more rental homes come onto the market.
Some renters are also becoming buyers, easing pressure on the rental side. That’s been helped by slightly better mortgage rates and a rush to complete purchases before the April 1st stamp duty changes in England.
Still, the market isn’t fully back in balance. Tenant demand is 10% higher than in 2019, while the number of available properties is still a third lower. So even with these improvements, competition remains high in many areas.
Affordability also remains a big issue. Rents have grown faster than wages over the past five years. Since 2020, average earnings are up 31%, but rents have jumped 40%.
Which areas are most competitive for renters?
There’s a big difference depending on where you’re looking. London has the best balance, with an average of 8 enquiries per rental listing. But in the North West, homes are getting 18 enquiries each on average.
Elsewhere, regions like the East Midlands, North East, South East, and Yorkshire & The Humber are seeing around 11–12 enquiries per listing. Meanwhile, demand is a bit higher in places like Scotland, Wales, the South West, East of England and the West Midlands, where each property is getting 13–15 enquiries on average.
So while things are improving overall, it’s still very competitive in plenty of areas.
Where are the current rental price hotspots?
Even with the slowdown in rental growth, some areas are still seeing big jumps. Chippenham in Wiltshire tops the list with a 16.4% annual increase, bringing the average rent to £1,082.
Stockport (Greater Manchester) is close behind, up 16.1% to £1,141, followed by Coventry (up 14.1% to £1,153) and Newcastle-under-Lyme in Staffordshire (up 13.8% to £863).
Even in lower-cost areas like Grimsby, average rents have gone up 12% in the past year, now sitting at £641.
What impact could the Renters’ Rights Bill have?
So far, the upcoming Renters’ Rights Bill doesn’t seem to be having much of an effect on the market. But that could change once it’s rolled out – likely later in 2025.
Our lettings expert, Christian Balshen, says: “I don’t think the Renters’ Rights Bill will change market activity much in the short term, but it will have broader implications. The rent-in-advance ban, for example, could make it trickier for some renters to get a home in competitive areas.”
The main priority for the majority of landlords will likely stay the same: finding long-term, reliable tenants — perhaps even more so, once the new rules are in place.
Looking to rent soon? Some tips that could help
While things are improving, demand is still strong — so being prepared can make a big difference. A few tips to boost your chances:
- Act fast: Set up alerts so you’re among the first to hear about new listings. Even with more homes available and competition easing, an early enquiry means you’re much more likely to secure the home you want.
- Get your paperwork ready: References, proof of income, and ID — have it all to hand.
- Time it right: With more landlords adjusting prices, there could be value in keeping an eye on listings that have been sitting for a while.
READ MORE: Tips to boost your chances of getting a rental viewing
