The UK rental market continues to evolve, with prices rising more slowly but still climbing steadily. Here's what both sides of the rental equation should know in to make smart decisions in this changing market. 

The numbers  

Recent data gives you a clear picture of where rents stand: 

The current situation  

Average UK private rents increased by 3.9% over the past year, reaching £1,270 in October 2024.* 

What's coming next  

Zoopla predicts a 3-4% rise in new rental prices throughout 2025, outpacing the expected 2.5% growth in house prices. 

Climbing rents  

What is driving these persistent increases? 

The property shortage  

Many landlords are selling up due to tax changes and stricter regulations, creating fierce competition among tenants for the remaining homes. 

Demand and supply imbalance 

The ongoing rental supply shortage is a key factor behind rising rents. Many landlords are leaving the market due to tax increases and stricter regulations, reducing the number of available rental homes. Meanwhile, demand remains high, with tenants competing for limited properties, particularly in high-growth areas. 

• High-demand regions – In major cities and commuter towns, rental competition remains intense, sustaining price growth even in expensive markets. 

• More affordable areas attracting tenants – As affordability pressures mount, renters are relocating to lower-cost areas, increasing demand and driving rent rises in those locations. 

Changing rules  

The Renters' Rights Bill aims to end no-fault evictions and tighten repair requirements—changes that could impact how landlords manage their properties. 

Smart moves for landlords 

Keep up with legal changes  

Stay informed about new regulations to avoid compliance issues and unexpected costs. 

Price with care  

While covering your costs is essential, consider what your tenants can realistically afford to maintain occupancy and good relationships. 

Make targeted improvements  

Sensible updates to your property can attract reliable tenants willing to pay for quality accommodation. 

Practical advice for tenants 

Know your position  

Familiarise yourself with rental legislation to understand your rights regarding rent increases and property conditions. 

Plan for increases  

Build a financial buffer to handle potential rent rises and consider less expensive areas if you're flexible on location. 

Talk to your landlord  

Open communication often leads to better outcomes—many landlords prefer keeping good tenants to risking vacancies. 

Looking ahead, the rental market remains challenging but not impossible to thrive in. With thoughtful planning and clear communication, both landlords and tenants can find their way through these shifting conditions. 

Get in touch for more insights on your rental situation

 
Zoopla*