Positive Changes to the Rental Market

2025 will be a challenging year however the statistics are positive and demand for rental properties is still high following pre-pandemic levels.

There will be new legislation coming into play potentially towards the end of 2025, however on face value there are lots of positives for landlords even with the removal of the Section 21 notices.

In a years’ time the new legislation will just become the normal every day. The fact remains that people require homes and the population is increasing, and due to a slight decline in the sales market as a result of higher costs, demand is down, and more people are being driven into rental properties:

Rental demand is expected to remain above average throughout 2025

Average rents increased to £1,369 (9.2%) in England during 2024

Rental enquiries in 2024 were 30% higher than pre-pandemic levels

Royal Institution of Chartered Surveyors (RICS) forecast 53% of surveyors expect house prices to rise in 2025, whilst 37% predict further rental increases during 2025.

Key factors driving this positive outlook include:

Population Growth: A growing UK population, especially amongst younger renters, will drive demand.

Rising Mortgage Costs: Higher interest charges & borrowing costs are continuing to drive many would-be buyers into the rental market, further boosting demand.

Limited New Supply: With less new rental properties entering the UK property market, competition for current and existing stock is set to intensify.

By marketing your property now, you will be well positioned to take advantage of the increasing tenant demand, and this will help secure an income sooner.

Our expert team will be able to offer you:

A detailed and accurate valuation

Stunning photos to promote and captivate renters

Management services to meet your demands

This article was written by Darren Barber, Assistant Lettings Manager.