The UK housing market continues to show robust growth, with average house prices climbing by 6.4% and private rents increasing by 7.4% year-on-year, according to the latest Office for National Statistics (ONS) figures released in May 2025. This upward trend, while showing slight moderation in rental inflation, signals persistent demand for housing—and landlords remain firmly at the heart of meeting this need.
Across the UK, average private rents rose to £1,335 per month by April 2025. England led the charge with average rents at £1,390 (up 7.5%), while Wales and Northern Ireland saw sharper increases of 8.7% and 7.8% respectively. In Scotland, the figure rose more modestly by 5.1% to £999. Meanwhile, house prices climbed to £271,000 on average, with the strongest growth recorded in England at £296,000 (6.7%).
Landlords balancing regulation, supply gaps and rising demand
Commenting on the figures, Richard Donnell, Executive Director of Research at Zoopla, said: “Rents continue to outpace house price inflation across the UK. The challenges of accessing home ownership due to higher mortgage rates have driven demand for rented homes higher, alongside high levels of migration for work and study.”
This long-term pressure on the rental market underscores the role private landlords play in ensuring supply. Nathan Emerson, CEO of Propertymark, echoed this: “We continue to witness, on average, around ten applicants for every property available to rent and this is a situation that has broadly remained stagnated across the last five years. It is imperative that rental supply rises to meet the challenges of demand.”
Indeed, while rental inflation has eased slightly—from 7.7% in March to 7.4% in April—the wider picture remains one of intense tenant competition and insufficient rental stock. Alex Upton, Managing Director at Hampshire Trust Bank, warned: “There is a risk that the imbalance becomes even more severe in the months ahead. The Renters’ Rights Bill may prove to be the final straw for some smaller landlords.”
Market resilience boosts landlord confidence
Despite concerns over regulation and taxes, the market has responded positively to easing monetary policy. House prices, buoyed by a rush to beat stamp duty changes in early 2025, have remained elevated. According to Darrell Walker of Chetwood Bank: “The Bank of England has cut rates again, and average mortgage rates now sit a full percentage point below where they were this time last year.”
This has provided a welcome tailwind for both landlords and buyers. Richard Harrison, Head of Mortgages at Atom bank, observed: “Lenders have been incredibly active in reducing rates… the average two-year fixed rate is now at its lowest level since September 2022.” With mortgage product choice reaching its highest level since 2007, competitive deals are helping landlords refinance or expand their portfolios in a more favourable lending environment.
Meanwhile, Foxtons reported strong momentum in both sales and lettings. Jean Jameson, Chief Sales Officer, noted: “Lower interest rates and growing buyer confidence are helping to drive momentum, and we’re optimistic about a busy few months ahead.” On the lettings side, Gareth Atkins added: “A 5% rise in new property listings has helped ease some of the pressure… The market is becoming less competitive and more accessible for many.”
