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Read the latest quarterly Rental Trends Tracker

Headlines from the October report:

 

Rents rise to new record:

  • Average advertised rents outside of London rose again in Q3 2025 to a new record of £1,385 per calendar month (3.1% higher than a year ago)
  • Average advertised rents in London also reach a new record of £2,736, however rents in the capital are now only 1.6% higher than a year ago

 The pace of new rental properties coming onto the market has slowed:

  • The number of available homes to rent is now 9% higher than this time last year
  • Though this figure is still 23% below this time in 2019, it’s the closest to pre-pandemic levels of supply for four years
  • However, the number of new rental listings coming onto the market is only 1% above this time last year, the lowest this figure has been in 2025
  • Stamp duty increases, potential tax changes in the Autumn Budget, and the Renters’ Rights Bill are all having to be considered carefully by landlords

Affordability remains stretched for both tenants and landlords looking to invest in the rental sector:

  • Despite average earnings rising by 5% compared with last year and outpacing rent rises, the cost of renting still takes up 44% of the average wage, up from 40% five years ago
  • Meanwhile, a 20% deposit for a typical first home has risen by £5,000 over the last five years
  • The average interest rate on new buy-to-let mortgages stands at 4.87% according to UK Finance. Whilst down from last year, it is nearly double the 2.93% seen before the mini-Budget in 2022

For more details, including regional trends in price, yield, supply and demand, read the full report:

Get the full picture here >

The rental market at-a-glance:

 “The majority of landlords are looking to stay in market and even grow their portfolios which is positive for tenants, but there are clearly challenges for those looking to invest in rental property. Sustained high mortgage costs mean landlords need to make sure purchases are viable, and uncertainty around legislation like the Renters’ Rights Bill and what may or may not be in the upcoming Autumn Budget isn’t helpful when looking to make financial investments.”

Colleen Babcock, Rightmove’s property expert