Average advertised rents across Great Britain have surged to a record £1,577 per month according to the latest data from Rightmove, piling further pressure on tenants while landlords brace for sweeping reforms and possible new taxes.
The August figures show rents are now 3% higher than a year ago, exactly in line with Rightmove’s prediction for 2025.
Supply remains the key driver. The number of available homes to rent is 8% higher than a year ago but still the lowest level recorded so far this year.
Compared with August 2019, before the pandemic reshaped the rental market, supply is down 27%.
REGIONAL VARIATIONS
Rents are rising fastest in the North West, up 10% year-on-year, while London has seen the slowest growth at 2%.
The figures come as landlords face mounting uncertainty. The Renters’ Rights Bill is expected to pass into law this autumn, introducing sweeping new tenant protections.
At the same time, rumours are swirling about tax changes in the Autumn Budget, including a possible levy on landlord rental income.
One in three landlords say they are considering exiting the market at some point, and two-thirds (66%) feel unsupported by the government.
New taxation and regulation are the leading frustrations, cited by 68% as reasons to scale back portfolios.
FUTURE HOPE
Despite the headwinds, not all landlords are retreating. Half (51%) plan to maintain their portfolios over the next year and 20% intend to expand.
Buy-to-let lending has also shown resilience: in the first half of 2025, the number of loans advanced for residential investment was 16% higher than in the same period last year. Lending for new purchases jumped 23%, outpacing a 14% increase in remortgages, according to UK Finance.
LEGISLATIVE CHANGES
Colleen Babcock, property expert at Rightmove, said: “There are challenges for both tenants and landlords in the current market.
“While tenants looking to move have more choice and less competition from other tenants compared with a few years ago, some may still find their options limited with rents at record levels.
“Meanwhile, landlords are bracing for big legislative changes in the Renters’ Rights Bill, and the rumoured tax changes have added an element of uncertainty heading into the autumn.”
PAYING THE PRICE
And she adds: “Landlords provide vital homes to tenants and have already faced an increase in taxation through stamp duty changes.
“It is essential that it remains attractive and viable to be a landlord so that tenants have comfortable places to live. If more landlords are driven out of the sector by more and more taxation, it will be tenants who lose out in the long run.”
