"The private rented sector has witnessed the most significant legislative shift in history, so it is promising to see extremely steady results in the lettings market, across all regions"
- Ed Phillips - Lomond
Renters on England’s south coast are facing the steepest increases in the country, according to a new report from estate and lettings agency network Lomond. Southampton, Portsmouth and Worthing all recorded rent rises of +8%, while Yorkshire continues to offer the most affordable rental options, with an average rent of £978.
The report shows a lettings market that remains resilient despite legislative change, including the introduction of the Renters’ Rights Act and expectations ahead of the Budget. Nationally, the average rental price stands at £1,461, representing a -5% decrease compared with 2024.
While the overall market saw a modest dip, some regions recorded notable growth between July and September. The south coast led the way, with rents up +8% and strong demand from tenants in Southampton and Portsmouth, highlighting shifting affordability trends. In Worthing, rents rose by +8% to £1,276, with smaller two- and three-bedroom homes remaining the most sought-after properties.
Other regions also recorded steady increases:
Midlands: average rents rose +5% to £1,300, outpacing the national average increase of +0.2%
Manchester: rents increased +4% to £1,346, reflecting sustained tenant demand and cost-conscious decision-making
London saw a more conservative rise of +4%, with the current average rent at £2,652, still more than 2.5 times the national average. Activity among buy-to-let investors declined slightly, while “accidental landlords” who could not sell stepped into the rental market.
Scotland recorded a small decrease of -1% in average rents to £1,348. However, Lomond observed a +38% increase in landlord enquiries in Q3 compared with 2024, indicating growing confidence. The report also noted a shift in buyer priorities, with move-in-ready homes increasingly preferred due to rising mortgage costs limiting renovation budgets.
The Renters’ Rights Act, now in effect, prompted speculation of widespread property sales by landlords. Data shows, however, that most professional landlords retained their properties, preparing for the legislative changes and optimising rental yields. Tenants are also increasingly aware, with 30% asking about the Act at the application stage.
Ed Phillips, group chief executive at Lomond, said, “The private rented sector has witnessed the most significant legislative shift in history, so it is promising to see extremely steady results in the lettings market, across all regions."
"Whilst overall there was a slight dip in rental prices, lets agreed and valuations remained relatively stable between July and September. Landlords continued to expand their portfolios, with new investors, undeterred by past market conditions, and with the lowest buy-to-let mortgage rates since August 2022, finding themselves entering a changing landscape ripe with opportunity.”
