Government says rents soaring – agents fear there’s worse to come

• Private Rent Increase: Average monthly private rents in the UK rose by 8.1% to £1,326 in the 12 months to February, slower than the 8.7% growth rate seen in January 2025. Regional averages are £1,381 in England (8.3%), £785 in Wales (8.5%), £998 in Scotland (5.8%), and £832 in Northern Ireland (8.1% as of December 2024). London saw the highest rent inflation (9.9%), while Yorkshire and The Humber saw the lowest (4.8%).
• House Price Trends: Average UK house prices increased by 4.9% to £269,000 in January, up from 4.6% in December 2024.
• Impact of the Renters’ Rights Bill: Industry experts express concerns that the legislation may unintentionally worsen affordability and lead to reduced rental property availability due to landlord withdrawals. This could drive rents higher despite recent slowing of rent inflation.
• Industry Insights:
  • Tenants are taking more time to make rental decisions.
  • Landlords are responding to market shifts and prioritising well-presented, competitively priced properties.
  • New legislation is expected to further focus on quality and value in the rental market.

These developments reflect changes in both rental and housing markets as affordability and supply challenges persist.