UK average rent increases for fifth consecutive month

The latest HomeLet Rental Index data shows that the average monthly rent in the UK rose again in May, increasing by 0.7% to £1,307. 

This marks the fifth month in a row of rental price growth and reflects ongoing pressures in the private rented sector.

Rents excluding Greater London grew slightly faster at 0.8%, bringing the average outside the capital to £1,124.

And HomeLet says that despite annual rent decreases in a few regions, the overall trend across the UK remains upward. Pressure on supply, fuelled by landlords leaving the sector or scaling back portfolios, continues to shape rental market dynamics in 2025.

Will Eastman, head of legal at HomeLet and Let Alliance, says legislative changes are influencing landlord behaviour, forcing many to consider leaving the sector.

“Many landlords are reviewing their positions as a result of ongoing legislative reform, including the Renters’ Rights Bill, and some are choosing to exit the sector altogether. This reduces the supply of rental properties at a time when demand remains extremely high. The result is continued upward pressure on rents across most regions of the UK.

“While the Renters’ Rights Bill is intended to improve protections and standards, it’s vital that the impact on supply is also considered. A balanced and sustainable rental market depends on having enough landlords willing to let quality homes to tenants.

“For those landlords remaining in the sector, many are now reassessing how they manage risk, especially as the Renters’ Rights Bill proposes changes that may affect their ability to regain possession of their properties. With rents continuing to rise across much of the UK, protecting that income stream is becoming even more important. 

“As a result, we’re seeing increased interest in rent guarantee insurance as a way to safeguard against missed payments. In a market defined by high demand, limited supply and ongoing legislative change, having financial protections in place offers landlords greater stability and peace of mind.”

Key Data from the May 2025 HomeLet Rental Index:

• Average UK rent: £1,307 (+0.7% MoM, +0.8% YoY)

• UK excluding London: £1,124 (+0.8% MoM, +2.8% YoY)

• Largest monthly increases:
  • Northern Ireland: +2.4%
  • Wales: +2.2%
  • Scotland: +1.8%

• Annual changes:
  • Northern Ireland leads with +7.0% growth
  • Greater London: -2.3% YoY
  • Scotland and North East: both at -0.3% YoY

This article is taken from Landlord Today