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14/7/25 8:13 pm
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Landlords and tenants are both feeling the pinch as affordability remains stretched for those either looking to rent or invest in their portfolio.
Rightmove says nearly a third (29%) of landlords report that rising mortgage rates are affecting their plans to expand their property portfolio, while nearly one in five (17%) say high mortgage rates mean they are considering selling off some homes.
The latest average interest rate on new buy-to-let mortgages stands at 4.87% according to UK Finance and although this is down from last year’s 5.21%, it is significantly higher than the 2.93% seen before the mini-Budget in 2022.
Rightmove’s property expert Colleen Babcock says uncertainty around the Renters’ Rights Bill and the upcoming Autumn Budget isn’t helpful when looking to make financial investments. “Landlords who were considering selling up over the next year told us that legislation changes were their biggest source of frustration,” she reports. “The government needs to consider this when setting its policy agenda over the next 12 months, otherwise we may see more landlords choose to leave the sector which will be to the detriment of tenants.”
Despite average earnings rising by 5% compared with last year, outpacing rent rises, the cost of renting still takes up 44% of the average wage, up from 40% five years ago. Rightmove reports that the average advertised monthly rent outside London hit a new record of £1,385 in Q3 2025 - 3.1% higher than a year ago. Meanwhile, for renters looking to save up for their first home, a typical 20% deposit has risen by just over £5,000 during the last five years, to £45,374.
At least the number of available homes to rent is now 9% higher than this time last year. While it is still 23% below this time in 2019, Rightmove reports it’s the closest to pre-pandemic levels of supply for four years.
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