The pace of rent increases in the UK’s private rented sector has slowed significantly, falling by around a third over the past year, according to the latest data from the Office for National Statistics (ONS).
In the year to July 2025, average private rents across the UK rose by 5.9%, down from 8.6% in the year to July 2024 – signalling a modest easing of pressure in a market that has been under strain.
The moderation in rent inflation coincides with early signs of improving rental supply, according to property portals Zoopla and Rightmove, which have reported a slight increase in the number of homes available to let.
However, the National Residential Landlords Association (NRLA) has warned that the market remains fragile, with demand continuing to outpace supply. Research by Pegasus Insight shows that 71% of NRLA members are still experiencing strong tenant demand.
Confidence among landlords in the broader UK economy has also plummeted, with just 2% expressing optimism ahead of the Autumn Budget — a joint record low, according to Pegasus Insight data.
With the rental market delicately balanced, the NRLA is urging the Government to use the upcoming Budget to support long-term investment in high-quality rented homes.
It is also calling for greater collaboration on the implementation of the Renters’ Rights Bill, stressing the need for a clear, realistic timeline that enables a smooth transition to the new tenancy system — without further disruption to an already stretched sector.
Ben Beadle, chief executive of the NRLA, said: “Whilst a slowdown in rent increases will be of some relief to tenants, the rental market remains in a fragile state.
“Tenants across the country continue to face the reality of there not being enough homes to meet demand. Meanwhile, the sector is craving certainty about how the government plans to implement the biggest overhaul of the market for almost 40 years.
“Now is the moment for ministers to get behind a clear, credible plan that eases pressure on renters, supports investment in new homes to rent, and ensures the smooth implementation of the Renters’ Rights Bill.”
Read the orginal article: https://propertyindustryeye.com/rents-cool-but-landlord-sentiment-continues-to-fall/
