The cost of renting is continuing to escalate, increasing by 1.5% outside London in the third quarter of 2025, Rightmove research shows.
This brings annual rental growth outside London to 3.1%, meaning rents are rising compared to house prices.
Within London rents rose by 0.9% in Q3 and 1.6% year-on-year.
Colleen Babcock, Rightmove’s property expert, said:: “The majority of landlords are looking to stay in the market and even grow their portfolios which is positive for tenants, but there are clearly challenges for those looking to invest in rental property.
“Sustained high mortgage costs mean landlords need to make sure purchases are viable, and uncertainty around legislation like the Renters’ Rights Bill and what may or may not be in the upcoming Autumn Budget isn’t helpful when looking to make financial investments.
The number of homes available to rent is now 9% higher than last year
However this is still 23% below this time in 2019.
The pace at which fresh rental properties are coming onto the market has slowed in recent months and now stands at just 1% ahead of this time last year.
Babcock added: “Landlords who were considering selling up over the next year told us that legislation changes were their biggest source of frustration.
“The government needs to consider this when setting its policy agenda over the next twelve months, otherwise we may see more landlords choose to leave the sector which will be to the detriment of tenants.”