Rental prices climb again amid market uncertainty

house pricesUK rental prices climbed again in July 2025, marking the seventh consecutive monthly increase, according to the latest data from the HomeLet Rental Index.

Average rents across the country reached £1,313 per calendar month – up 0.4% from June – driven by persistent demand and a shrinking pool of available properties.

Outside London, rents mirrored the national trend, rising to £1,132pcm. This reflects a 0.4% increase from the previous month and a 1.7% rise year-on-year. While national growth remains modest, some regions experienced sharper shifts, underscoring the uneven pressure on the rental market.

Will Eastman, head of legal at HomeLet and Let Alliance, said: “Rental prices continue to edge upwards, and market uncertainty appears to be playing a role. Legislative reform, rising costs, and shifting risk factors are prompting some landlords to reconsider their long-term plans, which could impact the supply of rental homes.

“The proposed Renters’ Rights Bill is one of several changes that, while well-intentioned, may inadvertently reduce confidence among some landlords. The Renters’ Rights Bill could have knock-on effects that are detrimental for all parties.

“Although some landlords may choose to leave the sector, many are instead exploring alternative ways to manage risk. Rent Guarantee Insurance, for example, is becoming more popular as a way for landlords to protect their rental income as they look for stability in an evolving market.”

Despite rent decreases in a few regions, the overall trend across the UK remains upward. Pressure on supply, potentially influenced by landlords reassessing their portfolios, continues to shape rental market dynamics in 2025.

July 2025 table: 

 

 

 

 

 

 

Region

July-2025

June-2025

July-2024

Monthly Var

Annual Var

Yorkshire & Humberside

£920

£914

£880

0.7 %

4.5 %

Wales

£933

£918

£894

1.6 %

4.4 %

Northern Ireland

£935

£941

£901

-0.6 %

3.8 %

North West

£1,082

£1,074

£1,058

0.7 %

2.3 %

West Midlands

£1,026

£1,023

£1,003

0.3 %

2.3 %

East Of England

£1,304

£1,305

£1,284

-0.1 %

1.6 %

South West

£1,194

£1,193

£1,186

0.1 %

0.7 %

East Midlands

£896

£904

£889

-0.9 %

0.8 %

South East

£1,431

£1,429

£1,422

0.1 %

0.6 %

Scotland

£1,017

£996

£1,016

2.1 %

0.1 %

North East

£701

£693

£702

1.2 %

-0.1 %

Greater London

£2,083

£2,078

£2,101

0.2 %

-0.9 %

UK

£1,313

£1,308

£1,308

0.4 %

0.4 %

UK excluding Greater London

£1,132

£1,127

£1,113

0.4 %

1.7 %

Source: HomeLet Rental Index

 

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2 Comments

  1. MrManyUnits

    Maybe the headline could read “Rent struggles to keep up with inflation”

    Report
  2. PossessionFriendUK39

    The majority of compliant Tenants will have the so-called Tenant campaign groups and politicians to thank for Higher rents.

    Report
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