The Largest Quarterly Dataset of UK Rental Activity – Q2 2025 Report

The UK rental market continues to set new records in Q2 2025 (April–June), though signs of a cooling market are becoming clearer as the post-pandemic frenzy continues to ease.

Rents Hit Another Record, but Growth Slows

The average advertised rent for homes outside London climbed to a new record of £1,365 per calendar month (pcm) this quarter – a 1.2% increase on Q1 and 3.9% higher than the same time last year.

In London, the average rent rose by 0.5% to £2,712 pcm, marking the 15th consecutive record for the capital.

While rents continue to rise, the pace of growth is slowing. This is the lowest annual rent growth since 2020, a sign that the market is recalibrating after years of pandemic-driven surges.

 

Five Years On: Tenants Paying £400 More Per Month

It’s been five years since the pandemic reshaped the rental market. In that time, average monthly rents have jumped by £417, a 44% increase.

For comparison, average earnings have risen by 36% over the same period – meaning rents have outpaced wage growth, further squeezing household budgets.

 

Supply & Demand: The Best Balance in Five Years

One of the biggest shifts in 2025 is the improving balance between supply and demand:

• 15% more rental properties are available than at this time last year (though still 29% below 2019 levels).
• Tenant demand is down 10% year-on-year.
• An average rental property now receives 11 enquiries, compared to 16 a year ago – though still above the pre-pandemic average of seven in 2019.

This improved balance is providing tenants with slightly more choice, reducing competition for each property.

 

Buy-to-Let Investment Picks Up

In positive news for the sector, UK Finance reports a 17% increase in buy-to-let loans this year compared to 2024.

This includes a 28% jump in new rental property purchases, bringing more homes into the private rental sector. More landlord investment should help ease some of the supply pressures and keep rent rises at more moderate levels.

 

Homes Taking Longer to Let

As competition eases, properties are taking longer to secure tenants:

• Average time to let: 25 days, up from 21 days last year and 18 days during the pandemic boom in 2022.
• 24% of rental properties see a price reduction during marketing – the highest proportion since 2017.

 

Regional Standouts

The North East saw the most significant improvement in supply, with 33% more available rental homes than a year ago. Other regions also reported year-on-year increases in available stock, contributing to the overall cooling of the market.

 

Key Figures at a Glance

National Average Asking Rent (Excl. London):

• Q2 2025: £1,365 pcm
• Quarterly Change: +1.2%
• Annual Change: +3.9%

 

Final Thoughts

While rents have reached new highs, slower growth and improved supply indicate that the market is gradually stabilising after the pandemic-era frenzy. For tenants, this means slightly more choice and less intense competition. For landlords, increased investment opportunities are emerging as demand steadies and lending improves.