UK Rental Market Update: November 2025 – Stabilisation Ahead Amid Major Reforms

As we move into the final weeks of 2025, the UK private rental sector is showing signs of cooling after years of sharp increases. While rents remain at record highs, growth is slowing, and experts predict a return to more sustainable levels in the coming years.

Key Highlights from Recent Reports

• Record Rents but Slower Growth: Rightmove's latest Rental Trends Tracker (November 2025) shows average advertised rents outside London hitting new peaks, with London at around £2,736 per month. However, year-on-year increases are modest in many areas – just 1.6% in London and Scotland – reflecting tenant affordability pressures and flat supply growth (new listings up only 1% annually).

• Savills Five-Year Forecast: Property giant Savills predicts UK rents will rise by a cumulative 12% over the next five years (to 2030), averaging around 2-3% annually. This is a return to pre-pandemic norms as tenant demand eases, first-time buyer activity rises, and migration levels stabilise.

• Seasonal Dip and Regional Variations: Goodlord's October data showed a sharp 12% month-on-month drop in average rents across England as the market enters its quieter winter period. Regional divides persist, with affordability worst in Wales and the North East, while London and the South see slight easing.

• Renters' Rights Act Becomes Law: The landmark Renters' Rights Act 2025 received Royal Assent in October. Key changes, including the end of Section 21 'no-fault' evictions and the shift to periodic tenancies, will roll out from May 2026. This will bring greater security for tenants but requires landlords to prepare for new possession grounds and compliance rules.

The rental market remains challenging for tenants, with many spending over 32% of income on rent. For landlords, the outlook is more balanced: yields are attractive, but upcoming regulations and potential exits from the sector highlight the need for professional management and high-quality properties.

At BritishProperty.uk, we advise both tenants and landlords to stay informed. Whether you're letting, renting, or investing, our team can help navigate these changes. Contact us today for tailored advice on the evolving UK rental landscape.