The UK rental market recorded steady growth in 2025, with average rents reaching \u00a31,602 per calendar month, representing a 4.9% increase compared to 2024, according to Lomond\u2019s Quarterly Insights Report for Winter 2025\/26.<\/p>\n
Regional performance varied significantly across the country. The South Coast of England recorded the strongest rental growth at 10.5%, with average rents rising to \u00a31,774 per calendar month. Areas including Brighton, Southampton, Portsmouth and Worthing experienced particular demand for two- and three-bedroom properties, where supply constraints drove double-digit percentage increases.<\/p>\n
London saw a more modest 1.5% increase, with average rents reaching \u00a32,395 per calendar month in 2025, which remains 49% above the national average. Both suburban and inner-city markets maintained stability despite regulatory changes introduced through the Renters\u2019 Rights Act and Budget announcements.<\/p>\n
The Midlands recorded 5% rental growth to \u00a31,168 per calendar month on average, whilst the North West saw a 4% year-on-year increase to \u00a31,243 per calendar month. Furnished city centre properties attracted the most tenant interest in the North West region.<\/p>\n
Scotland presented a contrasting picture, with average rents declining 1% to \u00a31,348 per calendar month. However, new landlord instructions rose by 38%, according to Lomond\u2019s data.<\/p>\n
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Buy-to-let mortgage activity, which fell sharply between 2023 and 2024, stabilised throughout 2025. BTL mortgages comprised approximately 8-9% of all new mortgages during the period.<\/p>\n
Ed Phillips, Group Chief Executive of Lomond, said: \u201cThe UK\u2019s rental sector showed real resilience in the final quarter of 2025. With the market framework now in place, the challenge shifts from anticipation to execution in both lettings and sales.\u201d<\/p>\n
He added: \u201cWhile regional trends vary, demand remains strong, and landlords continue to invest strategically. With buy-to-let lending stabilising and rents rising at a manageable pace, the market enters 2026 on solid footing.\u201d<\/p>\n
The report noted that tenant decision-making is increasingly influenced by energy efficiency, running costs and property condition as cost-of-living pressures persist across the UK.<\/p>\n","protected":false},"excerpt":{"rendered":"
The UK rental market recorded steady growth in 2025, with average rents reaching \u00a31,602 per calendar month, representing a 4.9% increase compared to 2024, according to Lomond\u2019s Quarterly Insights Report for Winter 2025\/26. Regional performance varied significantly across the country. The South Coast of England recorded the strongest rental growth at 10.5%, with average rents […]<\/p>\n","protected":false},"author":1,"featured_media":8999,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-8998","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-second-home"],"yoast_head":"\n