Rental properties newly marketed rose 8.6% in 2025, with an average of 108,348 properties listed per month compared to 99,739 in 2024. However, this figure reflects tenant turnover and existing properties re-entering the market rather than genuine additions to housing stock.
Despite the supply increase, average rents remained largely flat. Tenants agreed to pay £1,505 per month on average in 2025, down marginally from £1,511 in 2024. The figures fluctuate depending on property types and locations available during any given period.
October saw the busiest rental activity, with the highest average let agreed reaching £1,629 and the most properties coming to market. In contrast, January recorded the lowest average let agreed at £1,459, while December proved the quietest month with only 78,806 new listings.
The rental sector faced significant regulatory changes throughout 2025, including the Renters' Rights Act in England and the Housing (Scotland) Act. While these measures brought enhanced tenant protections, they also increased complexity for landlords through stricter tax frameworks and future energy efficiency requirements.
Meanwhile, property sales transactions experienced growing instability. Deals falling through rose 3.9% year on year, climbing from 240,681 in 2024 to 250,092 in 2025. The average price of a property affected by a fall-through increased from £362,143 to £365,949.
July proved the worst month for collapsed transactions, with 28,261 deals failing to complete. December saw the lowest number at 14,398, with affected properties averaging £358,502.
Administrative delays and buyers withdrawing at late stages contributed to transaction failures. However, improvements are being considered to accelerate the process and add security layers for future buyers and sellers.
"The UK's private rental sector has undergone profound changes over the last twelve months, with the Renters' Rights Act in England and the Housing (Scotland) Act being two of the most recent and notable examples," said Nathan Emerson, chief executive at Propertymark.
"Such changes have brought much-needed new protections for many tenants. However, they have also added additional pressures on landlords in terms of more complex tax frameworks and future demands regarding aspects such as energy efficiency."
Looking ahead, Emerson expects 2026 to become a year of adaptation as new legislation rolls out in phases. The sector will likely face challenges and achievements in close measure, but attracting long-term investment remains crucial to meet growing demand.
On transaction failures, Emerson noted the significant stress involved in moving house, which intensifies when deals collapse.
"Moving house is one of the most stressful moments that people experience in their lives, but that anxiety can increase significantly should a property transaction encounter an issue," he said.
"Although fall-throughs can happen due to a variety of factors like administrative delays and people withdrawing from a property transaction at the last minute, there are enhancements currently being considered to help speed up the process and add additional new layers of security for those approaching the buying and selling process in the future."
