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

Government figures show average UK rents rose by 8.1% over the year to February 2025, though the growth rate slowed compared to January’s annual increase of 8.7%. Regional disparities include London’s 9.9% rise compared to Yorkshire and The Humber’s 4.8%. Meanwhile, average house prices climbed 4.9% annually to £269,000 in January.

Experts suggest the forthcoming Renters’ Rights Bill may unintentionally push rents higher due to landlord concerns about regulation. While rents remain elevated, affordability is increasingly strained, and landlords are exiting the sector. Propertymark and industry leaders warn reduced rental property supply could lead to further rent hikes, despite slowing growth. However, tenants are taking more time to evaluate options in a market emphasizing quality and competitive pricing.