UK rental prices continued their upward trend in July 2025, marking the seventh consecutive monthly rise, according to the latest HomeLet Rental Index. With average rents now sitting at £1,313 per calendar month, the rental market remains under pressure from strong demand and limited supply.
Steady Growth Across the UK
Rental prices rose by 0.4% from June, reflecting modest but persistent growth. Outside Greater London, the average rent now stands at £1,132pcm, which also represents a 0.4% monthly increase and a 1.7% year-on-year rise.
While national increases appear modest, regional disparities are becoming more apparent. Certain areas such as Wales, Scotland, and Yorkshire & Humberside experienced sharper month-on-month growth, highlighting the uneven impact of supply and demand pressures.
Regional Snapshot: Rental Price Movement
| Region | July 2025 | June 2025 | July 2024 | Monthly Change | Annual Change |
|---|---|---|---|---|---|
| Yorkshire & Humberside | £920 | £914 | £880 | +0.7% | +4.5% |
| Wales | £933 | £918 | £894 | +1.6% | +4.4% |
| Northern Ireland | £935 | £941 | £901 | -0.6% | +3.8% |
| North West | £1,082 | £1,074 | £1,058 | +0.7% | +2.3% |
| West Midlands | £1,026 | £1,023 | £1,003 | +0.3% | +2.3% |
| East of England | £1,304 | £1,305 | £1,284 | -0.1% | +1.6% |
| South West | £1,194 | £1,193 | £1,186 | +0.1% | +0.7% |
| East Midlands | £896 | £904 | £889 | -0.9% | +0.8% |
| South East | £1,431 | £1,429 | £1,422 | +0.1% | +0.6% |
| Scotland | £1,017 | £996 | £1,016 | +2.1% | +0.1% |
| North East | £701 | £693 | £702 | +1.2% | -0.1% |
| Greater London | £2,083 | £2,078 | £2,101 | +0.2% | -0.9% |
What’s Driving the Market?
According to Will Eastman, Head of Legal at HomeLet and Let Alliance:
“Rental prices continue to edge upwards, and market uncertainty appears to be playing a role. Legislative reform, rising costs, and shifting risk factors are prompting some landlords to reconsider their long-term plans, which could impact the supply of rental homes.”
The proposed Renters’ Rights Bill, while aiming to improve tenant security, may have the unintended consequence of reducing confidence among some landlords. As a result, more landlords are exploring tools like Rent Guarantee Insurance to mitigate risk and protect their rental income in an evolving market.
What This Means for Landlords and Tenants
While tenants face continued affordability challenges, landlords are navigating a landscape of increasing regulation and uncertainty. However, for landlords who remain in the market, strong demand means rental properties continue to let quickly, particularly in high-demand regions.
For tenants, flexibility and preparedness are key—acting quickly on listings and having documentation ready can make the difference in securing a home.
In Summary
Average UK rent: £1,313 (up 0.4% from June)
Outside London: £1,132 average rent, up 1.7% YoY
Key driver: Limited supply and ongoing demand
Outlook: Continued pressure expected as policy changes and market sentiment evolve
Whether you’re a landlord navigating shifting regulations or a tenant facing rising rents, staying informed is key. With demand remaining high and supply under pressure, understanding local trends and acting quickly can help you stay ahead in today’s rental market.
