-
5/12/25 4:43 pm
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Rental demand has dropped to a six-year low after net migration fell sharply, and first-time buyers took advantage of better mortgage deals.
The latest Rental Market Report from Zoopla, which tracks rents for new lets, reveals that the imbalance between supply and demand for rented homes has narrowed sharply during 2025.
Demand for rented homes is down by 20% over the last year. Zoopla believes this drop in demand reflects a sharp decline in net migration, which ONS provisional estimates say has fallen by 78% between June 2023 and June 2025.
Meanwhile, the market is on track for 20% more first-time buyers purchasing homes over 2025 and many of these buyers come from the rental market. It reports that this is one reason why there are 15% more homes to rent compared to a year ago and the average estate agency branch now has 14 homes for rent, up from a low of just eight in 2022, but still lower than the pre-pandemic average of 17.
The time to rent has also been increasing, with the average home staying on the market for 17 days before being rented, 18% higher than a year ago.
Meanwhile, rental growth slowed to 2.2% at the end of October - down from 3.3% a year earlier - meaning average UK rents stand at £1,320 per month, £30 up on last year.
At a country and region level, rents are rising fastest in the North East (4.5%) and North West (3.2%), while growth is weakest in London (1.6%) and in the West Midlands and Scotland (both 1.7%).
Adam Jennings, head of lettings at Chestertons, says if the sales market improves, some landlords may sell rental properties they had previously held back, potentially reducing rental supply. He adds: “Combined with the ongoing strong tenant demand, particularly in London, this could cause rents to resume their upward trajectory.”
Tags:
.avif)
Comments