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
According to Goodlords rental index, the average rent of a new tenancy is now £1,226, up from £1,216 in April – a rise of almost 1%. This is the highest rental average recorded by the Index since October 2024.
The most significant swing was recorded in the North East, where rents were up by 2.2%. This was followed by the East Midlands, which saw a 1.8% rise in costs.
All regions recorded an increase in average rents, with the exception of the South West where prices dipped by 0.6%.
The average cost of a rental property in May was 3.7% higher than the same time last year. In May 2024, prices were £1,183 – £43 per month (or £516 per year) cheaper than current prices.
However, May’s year-on-year rental cost rise of 3.7% is lower than April’s figure of 4.2% and March’s 4.6%. This indicates that, although prices over the summer are expected to break records, the pace of rental inflation is beginning to settle into a more moderate pattern.
For the third month in a row, voids held steady; remaining unchanged at 21 days.
However, it was a decidedly more mixed picture at regional level. Across the East Midlands, North West, South East and South West, voids shortened as tenant demand spiked.
At the same time, voids lengthened considerably in the West Midlands (up 53%) and in Greater London (up 19%).
Goodlord chief executive William Reeve says “data from the last six years consistently shows that rental prices peak in late summer and early autumn. The way the numbers are currently looking suggests that this year will be no exception and that a range of new rental records will be set in the coming months. Although the pace of year-on-year increases is starting to slow – and this is definitely a trend to watch closely – ongoing supply issues coupled with landlord jitters ahead of the Renters’ Rights Bill means that rents remain on track to rise for the foreseeable.”