Lomond, the sales and lettings group that includes Chase Evans, Kinleigh Folkard & Hayward, and Linley and Simpson amongst its brands, has published is latest Quarterly Insights report for the second quarter of 2025.
It says that in the national private rented sector, upwards pressure on rents stimulated by a persistent lack of supply, remains the headline story. While the figures from Office for National Statistics (ONS) show rental price increases of 7% across the board in the 12 months to May 2025, there are regional idiosyncrasies. The Midlands and the North West, which Lomond describes as more affordable areas are seeing more pronounced price increases, “albeit at a steadier pace than in previous years, London and Scotland have seen more conservative increases of 4-5% over 12 months to May.”
“This moderate to strong rental growth supports yields, so in a market with slower capital appreciation, landlord returns are still protected,” the report says. “The conditions favour landlords looking to hold rather than exit the market, and portfolio expansion opportunities are plentiful to evaluate.”
The Quarterly Insights report speaks to senior management in all the regions that Lomond operates.
Scotland
MD Kevin Fraser comments: “In the lettings market, we are observing the typical seasonal uplift associated with the warmer months. While Q1 was subdued, activity has since picked up.”
Rental values continue to rise, he says, albeit at a more moderate pace than the sharp increases seen during the pandemic, presenting attractive opportunities for renters and drawing new stock to market. He expects tenant demand to remain strong through Q3.
He adds: “One and two bedroom properties in city centres continue to attract the highest demand, with Glasgow offering some of the most favourable yields for investors. Demand remains concentrated in the central belt, and urban hubs are therefore consistently attracting investor attention, not least because city properties have better resale liquidity compared to their rural counterparts.”
In the sales market, Fraser has found that properties with a Home Report value up to £300,000 are attracting the strongest demand and enjoying the quickest conveyancing timelines. Two-bedroom flats and affordable family homes continue to perform well, he adds, but activity at the higher end of the market was more subdued in Q2.
Yorkshire
MD David Mear comments: “The market presents an attractive opportunity for landlords partnered with agents who are equipped to navigate the anticipated changes to egulations.”
The dynamics of supply and demand are fairly balanced across the lettings market in Yorkshire, he says, with good quality properties letting quickly, particularly two or three bedroom terraced homes.
He adds that returns in Yorkshire remain strong, and there are investors actively expanding their portfolios. Sheffield and Hull continue to attract interest with favourable yields, averaging at 7%, and Harrogate and York also appeal to investors right now.
“The Yorkshire sales market remained steady throughout the second quarter, showing consistency with the previous quarter. Buyer demand continues to be strong. Family homes, particularly three and four bedroom properties, are performing well, while investor interest remains focused on one to three bedroom homes that offer low upkeep and solid returns.”
North West
MD Matthew Smith says: “Despite upcoming changes under the Renters’ Rights Bill (RRB), we’ve seen no signs that tenants intend to exploit these freedoms.”
He continues: “We are entering a new phase in the lettings market where landlords must remain alert and adaptive. Investors face a strategic choice: city centre properties offer strong yields, while suburban locations provide potential for long-term capital growth. However, success increasingly lies in balancing both.”
He has seen rental prices continue to climb across all tenancy types, with the strongest growth seen in periodic tenancies, but to retain quality tenants, landlords must ensure their properties are well-maintained and competitively priced, especially with expectations rising due to Build to Rent development.
“The number of properties entering the sales market has increased over the last quarter,” Smith adds, “creating more choice for buyers, but also more competition for sellers. “We expect the Q3 market to remain buoyant and any reduction in the base rate, bringing lower monthly mortgage costs, is likely to add further momentum.”
Midlands
MD Richard Crathorne says: “Thanks to the additional benefits of our Rent and Legal Protection product, interest in our auxiliary services has risen remarkably. Our enhanced offering is just one of the advantages clients can access.”
The Midlands rental market remains healthy, he adds, with tenants showing clear priorities. Features such as en suite bathrooms, which were previously considered a luxury, are now viewed as essential by tenants, and location is ever-important alongside. Properties close to transport links, amenities and leisure facilities are in higher demand, reflecting a shift toward lifestyle-led renting.”
Of the regional sales market, Crathorne comments: “This quarter has reinforced the importance of accurate valuations. With plenty of housing stock entering the market, clients require accurate market insight and tailored advice to deliver the best outcomes.
“Alongside the owner-occupier sales market, there are signs of increased investor activity in the region. Birmingham and Nottingham remain popular locations for investors due to their strong rental markets and stable growth potential.”
Kent
MD Mark Brooks comments: “Being part of the Lomond network means our clients increasingly benefit from trusted local expertise across the UK’s major cities, creating opportunities for seamless portfolio expansion.”
Kent’s lettings landscape has shifted in Q2, he says, with a steady influx of quality tenants, combined with lower-than-expected rental stock volumes, tipping the balance, with demand once again outpacing supply.
He continues: “For landlords considering investment in Kent, we have seen rents remain high relative to local average salaries, particularly in areas surrounding major employers such as UK Border Force in Dover. Herne Bay and Broadstairs continue to offer excellent value for money for investors, with average yields of 4-5% and strong capital growth”
Brooks points out that the Kent sales market saw stock levels up approximately 11% year-on-year, but the number of sales being agreed has risen by just 4% over the same period. A notable driver of demand in Kent continues to be London-based buyers, seeking more space, better value and lifestyle change.
South Coast-East
MD Paul Broomham says: “The region’s popularity, connectivity and rental resilience continue to prove its merit as a long-term investment destination.”
He believes that whilst demand has decreased in Q2 across the region relative to the same period last year, this reflects a market normalisation rather than a downturn. Demand is still high relative to stock volumes and he is seeing a typical surplus of 15 applicants per property.
Worthing, Shoreham, Lancing and Goring-by-Sea, all close to Brighton, are experiencing a notable surge in appeal. “Tenants are increasingly prioritising family-friendly housing, outdoor space and value for money, traits which these areas have in abundance.”
Landlord interest has followed to these peripheral towns and villages. A growing inclination towards longer-term tenancies reflects tenants’ continued preference for stability over a series of costly moves.”
Broomham adds: “Sales volumes remain healthy, driven by sustained activity among first-time buyers and family movers. While the market is undeniably sensitive to price, competitively priced and attractively presented homes continue to generate strong interest.”
South Coast Central
MD Elliot Trodd comments: “City centres remain rental hotspots, driven by the popularity of build-to-rent developments. With deep insight into upcoming new homes, we maintain a competitive edge with exclusive access to the most desirable properties.”
He goes on to says that landlords are extending their portfolios along the coast, with growing interest in Brighton and Southampton. City centres, such as Southampton, Portsmouth and Winchester remain rental hotspots.
He continues: “Tenants are becoming increasingly pragmatic and price-conscious in a market with plenty of available stock. In urban areas, two bedroom properties with parking remain highly desirable, while outside the city, practical family homes in popular school catchment areas are in high demand.”
Following stamp duty changes at the end of Q1, he has seen a sales market has being led by committed buyers and motivated sellers. The lower to mid-market remains particularly resilient, he say, though the region is characterised its ‘markets within markets’ whereby freehold properties transact more smoothly, whilst higher-value homes must be priced with greater precision to attract serious interest.”
Read the orginal article: https://propertyindustryeye.com/lomond-shares-region-by-region-market-analysis-for-q2/
