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 slower rent increases come 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 that recovery in the rental market remains fragile, with the demand for rental housing still outstripping supply. Data from the research consultancy Pegasus Insight has found that 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 in it ahead of the Autumn Budget - the joint lowest level ever recorded by Pegasus Insight. 

With the prospects for recovery in the rental market now delicately poised, the NRLA is calling on the Government to use the forthcoming Budget to support long term investment in new decent quality rented housing.

Alongside this, the Government needs to work closely with the sector to ensure a credible plan is in place to implement the Renters’ Rights Bill with as little disruption to the market as possible. This must include a clear and realistic timeframe that allows for a smooth and seamless transition to the new tenancy system.

Ben Beadle, Chief Executive of the National Residential Landlords Association, 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.”

-ENDS-

Notes:

•    According to the Office for National Statistics average UK monthly private rents increased by:

-    5.9% in the year to July 2025.
-    8.6% in the year to July 2024.

•    According to Zoopla’s most recent Rental Market Report published in June 2025: 

-    Demand for rented homes was 16% lower over the last year but remains more than 60% above pre-pandemic levels.

-    Rental housing supply has increased, with 17% more homes available than a year ago, but supply remains 20% below pre-pandemic levels. 

•    Rightmove’s Rental Price Tracker covering the second quarter of the year reports that:

-    The number of available properties to rent is now 15% higher than at this time last year. 
-    The number of prospective tenants looking to move is 10% lower than the same period last year. 
-    The average number of enquiries per typical rental property is now 11.

•    Pegasus Insight questioned 794 members of the NRLA via an online survey between 22nd June and 7th July 2025. 

•    Further information about the NRLA can be found at www.nrla.org.uk  It posts on X @NRLAssociation.

•    The NRLA’s press office can be contacted by emailing [email protected] or by calling 0300 131 6363.