More than half of UK landlords have already increased rents over the past year, with over one-third planning further hikes in the coming six months, according to a recent survey from property management platform Lendlord. The survey of active landlords nationwide found that 58.5% implemented rent rises in the last 12 months, with nearly a third applying increases selectively and over a quarter applying them across their entire portfolios.

Looking ahead, 36.3% of landlords intend to raise rents within the next six months, while another 30.4% remain undecided but are closely monitoring market conditions. Vacancy levels remain notably low, with nearly three-quarters of landlords reporting fully let properties and only 6.8% experiencing vacancies exceeding 25%. Tenant turnover appears stable, with 73.8% of landlords observing no significant changes in move-ins or move-outs.

A key factor influencing landlords’ cautious approach is the upcoming Renters’ Rights Bill. Around 72% of landlords are either reviewing or planning to review rents in response to potential regulatory changes, although only 14.4% have already implemented adjustments specifically due to the Bill. Aviram Shahar, Lendlord’s co-founder and CEO, stressed the balancing act landlords face: addressing inflationary pressures while maintaining tenant stability. He noted that demand remains high, with low vacancy rates, and landlords are actively assessing the impact of regulation on future rent strategies.

The survey also highlighted significant regional rent disparities, with average rents reported at nearly £2,000 per month in Greater London, compared to around £730 in the North East. This variation reflects the ongoing challenges for tenants in prime areas where demand is strongest.

This data aligns with broader market trends. According to the Royal Institution of Chartered Surveyors (RICS), the UK rental market has seen an 11-month consecutive decline in rental property supply as of June 2025, driven by landlords exiting the market amid rising mortgage costs, increased taxation on second homes, and enhanced tenant protections. This decline in supply has contributed to a 7% annual increase in rents as of May 2025, reinforcing the difficulties tenants face in securing affordable accommodation.

In London particularly, an increasing number of buy-to-let properties are being sold rather than rented, with 22% of previously rented homes in inner London listed for sale in July 2024. Contributing factors include lower rental yields, tax changes, and upcoming regulatory measures such as the requirement for minimum emissions ratings for rental properties by 2030. Slowed house price growth and higher mortgage costs are also eating into landlords’ profits, prompting sales that further tighten the rental market.

Industry data reveals that average UK rents have surged 21% between 2022 and 2025, rising by £221 to an average monthly cost of £1,283 as of March 2025. Remarkably, this increase surpasses the rise in average mortgage repayments over the same period, which increased by £218 to £1,154. Analysts attribute this rent surge to a strong labour market, increased migration for work and study, high mortgage rates delaying homeownership, and limited investment in buy-to-let properties, all of which have exacerbated pressure on rental supply.

Low vacancy rates and limited availability of quality rental properties further intensify competition, allowing landlords to maintain and escalate rents. Property developers’ emphasis on the owner-occupied housing market means fewer rental homes are being added, amplifying scarcity. Tenants often face fierce competition when searching for rental homes, giving landlords greater leverage over pricing.

However, the pace of rent increases has shown signs of slowing slightly. According to Zoopla’s Quarterly Rental Market Report, the UK saw rent growth slow to 3.9% over the past year, down from 9.1% a year earlier. This slowdown is attributed to a narrowing supply-demand gap during 2024 and mounting affordability pressures on tenants, particularly in high-rent areas. Despite the easing growth rate, the annual cost of rent in the UK has risen sharply from £12,000 in 2021 to over £15,000, increasing by 27% and outstripping earnings growth, which has risen 19% in the same period.

Meanwhile, policy changes are stirring debate among industry leaders. Simon Carter, CEO of British Land and president of the British Property Federation, has openly criticised a government proposal to ban ‘upward-only’ rent reviews in commercial leases. While the ban aims to make high street rents more affordable and sustainable for small businesses, Carter warned it could undermine investor confidence and deter capital inflows due to increased uncertainty.

Taken together, these factors paint a complex picture of the UK rental market, where landlords adopt a measured approach to rent increases amid persistent demand, regulatory shifts, and economic pressures, while tenants grapple with rising costs and reduced supply.

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Source: Noah Wire Services