The UK rental sector continued to demonstrate resilience at the end of 2025, with rents rising steadily even as new regulations and affordability pressures affect the market.
New figures from the Lomond Group’s Quarterly Insights Report for Winter 2025/26 show that the average rent across the UK reached £1,602 per month, marking a 4.9% increase compared with 2024. This growth has occurred despite some cooling demand in certain regions and the anticipated impact of the upcoming Renters’ Rights Act, which is expected to increase costs for landlords.
The south coast of England experienced the most significant rental growth, with average rents rising 10.5% to £1,774 per month. High demand in cities such as Brighton, Southampton, Portsmouth, and Worthing has continued to exceed the supply of available homes.
Two- and three-bedroom properties in particular remain in short supply in these areas, helping to push rental prices up by more than 10% in some locations.
In London, rents increased more modestly, climbing 1.5% during 2025 to an average of £2,395 per month. Even with this slower growth, rents in the capital remain around 49% higher than the UK average.
Both inner-city and suburban areas of London maintained relatively stable rental conditions over the year.
Other parts of England also recorded sustainable increases in rental prices.
Midlands: rents rose 5% to £1,168 per month
North West: rents increased 4% year-on-year to £1,243 per month
In the North West, furnished apartments in city-centre locations were especially popular among tenants.
While average rents in Scotland fell slightly by 1% to £1,348, the market still showed signs of momentum. New landlord instructions rose 38%, indicating continued confidence and demand for ready-to-move-into rental homes.
According to Lomond Group chief executive Ed Phillips, the final months of 2025 showed the rental sector’s strength despite the changing regulatory environment.
He noted that demand remains strong across much of the country and that landlords are continuing to invest strategically. With buy-to-let lending stabilising and rent increases remaining relatively moderate, the rental market is entering 2026 in a stable position
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