The average advertised rent across Great Britain has reached a new record of £1,577 per calendar month (pcm), according to the latest monthly rental market insights from Rightmove.
This figure represents a 3% year-on-year increase, aligning with Rightmove’s full-year forecast for 2025. While tenant demand has cooled, rents continue to rise due to the ongoing shortage of available rental homes.
Compared to August 2024, the number of properties available to rent has risen by 8%. However, this is still the lowest level of availability recorded so far this year. Looking further back, rental stock remains 27% below pre-pandemic levels seen in August 2019, highlighting persistent long-term supply challenges.
Rental prices are rising fastest in the North West, where average rents are up 10% year-on-year. In contrast, London has seen the slowest rate of growth, with rents rising just 2% over the same period.
The remainder of 2025 is expected to be busy for the rental sector, with major policy developments on the horizon. The Renters’ Rights Bill is anticipated to receive Royal Assent this autumn, while speculation is growing around potential property tax reforms in the Autumn Budget — including the possibility of a new tax on landlord rental income.
These looming changes are adding to landlord concerns. Insights gathered from landlords show that one in three is considering exiting the market in the future. A significant 66% feel unsupported by the government, and 68% cite increased regulation and taxation as their top frustrations.
As a result, some landlords plan to reduce their property holdings over the next 12 months. However, the outlook is mixed: 51% of landlords intend to maintain their current portfolio, while 20% plan to expand.
Despite the uncertainty, recent lending figures point to resilience in the buy-to-let sector. According to UK Finance, the number of buy-to-let loans issued for residential investment in the first half of 2025 was 16% higher than the same period last year.
Loans for new rental property purchases are outpacing remortgages, with a 23% increase in new purchase loans compared to a 14% rise in remortgaging activity.
Colleen Babcock, property commentator at Rightmove, said: “There are challenges for both tenants and landlords in the current market. While tenants looking to move have more choice and less competition from other tenants compared with a few years ago, some may still find their options limited with rents at record levels. Meanwhile, landlords are bracing for big legislative changes in the Renters’ Rights Bill, and the rumoured tax changes have added an element of uncertainty heading into the autumn.
“Landlords provide vital homes to tenants and have already faced an increase in taxation through stamp duty changes. It is essential that it remains attractive and viable to be a landlord so that tenants have comfortable places to live. If more landlords are driven out of the sector by more and more taxation, it will be tenants who lose out in the long run.”
August monthly rents
| Region | Average monthly rental payment | Annual change % |
| East Midlands | £1,134 | 2.3% |
| East of England | £1,599 | 2.5% |
| London | £2,699 | 2.0% |
| North East | £918 | 2.9% |
| North West | £1,278 | 9.7% |
| Scotland | £1,141 | 2.4% |
| South East | £1,828 | 2.4% |
| South West | £1,461 | 2.1% |
| UK | £1,577 | 2.9% |
| Wales | £1,107 | 2.6% |
| West Midlands | £1,196 | 2.5% |
| Yorkshire and The Humber | £1,051 | 2.5% |
Read the orginal article: https://propertyindustryeye.com/record-rents-as-landlords-brace-for-reform-and-tax-changes/
