"Rental inflation continues to slow as a result of weaker demand and 20 per cent more homes available to rent. Lower migration and easier conditions for first-time buyers are why demand for rented homes is at a six-year low"
- Richard Donnell - Zoopla
Private rental inflation across the UK slowed to 4.4% in the year to November 2025, down from 5.0% the previous month and marking the lowest annual growth rate since June 2022, according to provisional estimates from the Office for National Statistics.
Average monthly rents reached £1,366 in November 2025, reflecting continued upward pressure on tenants despite the deceleration in growth. Regional disparities remained significant, with Northern Ireland recording the steepest annual increase at 6.4% in the 12 months to September 2025, pushing average rents to £871.
Wales followed with 6.1% annual growth, bringing average rents to £820 in the year to November 2025. England saw rents rise 4.4% to £1,422, while Scotland recorded the most modest growth at 3.3%, with average rents reaching £1,012.
Within England, the North East experienced the highest rental inflation at 8.4% in the year to November 2025, while London recorded the lowest growth rate at just 2.8%.
Northern Ireland rental data currently extends only to September 2025. The UK rental statistics for the latest two months incorporate estimates for Northern Ireland based on the monthly average of the region's most recent two-month inflation rate.
Alex Upton, managing director, specialist mortgages & bridging finance at Hampshire Trust Bank, said, “While the pace of rental growth has slowed, 2025 still delivered significant increases, underlining how stretched the private rental sector remains. That pressure is not easing. The recent Budget has added to it, with the government’s own figures showing 2.4 million landlords will face higher taxes by the end of this Parliament. For some, that could be the point they call time on their portfolios."
"Regulatory change continues to build. From energy standards to tenancy reform, landlords are being asked to adapt at speed, often without clarity. The Renters’ Rights Act will be another major shift in how property is owned and managed, and we are already seeing investors respond."
"There is a clear move towards more complex asset types such as HMOs, semi-commercial units and mixed-use portfolios. That shift is not just about chasing yield. For many, it is about finding a way to stay in a sector that is getting harder to navigate. Brokers are seeing it play out on the ground every day."
"Improving standards is the right ambition, but there is a line between raising the bar and pulling the rug. If pressure continues to build without recognition of the consequences, we risk weakening the very market people rely on. That is not a policy warning. It is already happening.”
Richard Donnell, Executive Director of Zoopla, said, "Rental inflation continues to slow as a result of weaker demand and 20 per cent more homes available to rent. Lower migration and easier conditions for first-time buyers are why demand for rented homes is at a six-year low."
Nathan Emerson, CEO of Propertymark, comments, “Though it might be disappointing for many to see that rents on average have increased overall, it is encouraging to see that through 2025, we have witnessed rental inflation trending downwards."
“There remains an unhealthy imbalance between rental supply and demand, however, which continues to contribute to rental prices edging upwards. It has been positive to see attention focused on ensuring higher standards and greater consumer protection for those who choose to rent during the year; however, it also remains fundamentally important that investment is encouraged to keep pace with ever-growing demand, as the population continues to expand.”
