Rent pressures ease but market remains fragile, warn landlords

The rate of rent increases in the private rented sector has fallen by around a third over the past year according to official data.

The Office for National Statistics reports that in the year to July 2025, average private rents increased by 5.9% across the UK, down from 8.6% in the year to July 2024.

The slow down in rent increases comes amidst signs of a slight easing of pressures in the rental market. According to the property listings platforms Zoopla and Rightmove, there are now signs of a slight uptick in the supply of rental housing.

However, the National Residential Landlords Association (NRLA) is warning recovery in the rental market remains fragile, with the demand for rental housing still outstripping supply.

Rightmove is reporting an average of 11 households enquiring after each home listed for rent, with data from the research consultancy Pegasus Insight finding 71% of NRLA members continue to report strong tenant demand for their properties. 

Landlord confidence in the UK economy is also at rock bottom, with just 2% reporting confidence ahead of the Autumn Budget - the joint lowest level ever recorded by Pegasus Insight. 

Ben Beadle, NRLA chief executive said: “Whilst a slowdown in rent increases will be of some relief to tenants, the rental market remains in a fragile state. 

“Tenants across the country continue to face the reality of there not being enough homes to meet demand. Meanwhile, the sector is craving certainty about how the Government plans to implement the biggest overhaul of the market for almost 40 years.

“Now is the moment for ministers to get behind a clear, credible plan that eases pressure on renters, supports investment in new homes to rent, and ensures the smooth implementation of the Renters’ Rights Bill.”

What does the NRLA want to see? 

With the prospects for recovery in the rental market now delicately poised we are calling on the Government to support the market with:  

• An Autumn Budget that supports long term investments in the homes to rent tenants need. 

• A decision to reverse the freeze on Local Housing Allowance rates to open up the rental market to those reliant on benefits. 

• A clear and credible plan to implement the Renters’ Rights Bill in a smooth and seamless way, minimising disruption. 

This programme of simple changes will, we believe, help encourage a robust and thriving private rented sector, which is vital for the UK's social and economic well-being.