Rents still rising steeply but will get worse, warns top agency

The latest government data reveals that UK private rents increased by 7.7% year-on-year to £1,332 in March 2025, though the rate of growth has slightly slowed compared to February. Regional variations show England’s rents rising by 7.8%, Wales by 8.9%, and Scotland by 5.7%, with the North East experiencing the highest inflation at 9.4%.

Experts warn that rental prices are likely to rise further due to landlords leaving the sector in response to stricter regulations, higher mortgage costs, and the Renters Rights Bill, which makes reclaiming properties more difficult. Despite efforts to protect tenants, concerns are growing over the unintended consequences of policy changes.

Affordability remains a major issue, with rental costs reaching a tipping point for many. Since the pandemic, rents have surged by 30%, widening the gap between housing benefits and market rates. The freeze on Local Housing Allowance until 2026 exacerbates the struggle, with only 2.5% of private rentals in England deemed affordable for tenants relying on benefits.

Tenant resistance to higher rents is emerging, forcing some landlords to lower expectations despite ongoing supply shortages. Meanwhile, demand significantly outweighs available properties, with an average of 10 prospective renters competing for each listing. Calls for targeted support and investment in the rental sector continue to grow as pressures mount on both tenants and landlords.