Brighton recorded the sharpest rental price rise in the UK during 2025 with average rents climbing by 15% year-on-year according to latest data.
The figures, released in Lomond’s Winter 2025/26 Quarterly Insights Report, show the seaside city outpaced every other major rental market as tenant demand continued to intensify.
Nationally, average rents increased by 4.9% over the year to reach £1,602 per calendar month (pcm), signalling steady growth despite ongoing affordability pressures and cooling demand in some regions.
The South Coast of England emerged as the strongest performing region overall, with rents rising by 10.5% to an average of £1,774pcm. Alongside Brighton, markets including Southampton, Portsmouth and Worthing saw demand significantly outstrip supply, particularly for well-maintained two- and three-bedroom homes.
CAPITAL PROXIMITY
Brighton’s appeal – driven by its proximity to London, coastal lifestyle and hybrid working patterns – has sustained strong commuter demand.
Often dubbed “London-by-the-Sea”, the city continues to attract renters seeking urban amenities with seaside access.
By comparison, London recorded a more modest 1.5% increase in rents, taking the capital’s average to £2,395pcm. Despite the slower rate of growth, London rents remain 49% higher than the UK average.
The Midlands saw rents rise by 5% to £1,168pcm.
Elsewhere, the Midlands saw rents rise by 5% to £1,168pcm, while the North West posted a 4% annual increase to £1,243pcm, with furnished city centre homes proving particularly popular.
Scotland was the only region to record a marginal decline in average rents, down 1% to £1,348pcm. However, Lomond reported a 38% surge in new landlord instructions north of the border, suggesting renewed investor confidence.
The report also reports that buy-to-let mortgage activity, which fell sharply between 2023 and 2024, stabilised throughout 2025. BTL loans accounted for around 8–9% of all new mortgages, indicating landlords remain active but cautious amid regulatory change and economic pressures.
RESILIENT MARKET
Ed Phillips (main picture), Group Chief Executive of Lomond, says: “The UK’s rental sector showed real resilience in the final quarter of 2025. With the market framework now in place, the challenge shifts from anticipation to execution in both lettings and sales.
“While regional trends vary, demand remains strong, and landlords continue to invest strategically. With buy-to-let lending stabilising and rents rising at a manageable pace, the market enters 2026 on solid footing.”
