Rents have increased again to record levels in the first quarter of 2025. One index claims that the average advertised monthly rent for properties outside London has climbed 0.6% to £1,349.

However, Rightmove reports that the outlook is not so good in London as rents have risen by only £3, or 0.1%, reaching £2,698. This is a 2.5% rise compared to 2024.

Rightmove also states the supply of rented properties has surged with an 11% increase in new listings in March compared to last year.

Rightmove’s property expert, Colleen Babcock, stated “The rental market is still really busy, and as the regional picture shows, it’s likely to feel even busier in some areas of Great Britain than others.

“It’s good news for tenants that on the whole, the balance between supply and demand is improving.”

She adds “This is having a knock-on effect on rental prices, with rents increasing more slowly and more landlords reducing their advertised price.”

UK Finance report that a 32% surge in buy to let lending is driving the supply of new homes.

There was also a 7% rise in first-time buyer sales and a 5% increase in prospective buyers.

The lettings market suffers a shortage of property compared to pre-pandemic levels with tenant demand being 10% higher than 2019. The number of available properties is 33% lower, so that there are now on average 12 enquiries per letting. In 2019 ther were only 5 enquiries per letting.

There are strong regional differences. The North West has 18 enquiries per property, while London the average is lower at 8 enquiries.

Over the past five years, rents have risen 40%, outpacing a 31% increase in average earnings.

Results from the Goodlord Rental Index show that April 2025 marked the fourth consecutive month of rising rents. The index shows that the average rent per property in England reached £1,216, a 4.2% increase from £1,166 in April 2024.

Again the results show regional variations with the North West, South East and West Midlands with higher than 5% annual increases, while the East Midlands saw less than 1%.

CEO, William Reeve, said: “It’s been another month of steadily increasing rents, at a time of the year when we often see more ups and downs in terms of rental averages.

“This continues to underscore the prediction that this summer will bring a rental spike across the country, although rising salaries will be offsetting this impact for tenants to some degree.”

The managing director of Accommodation for Students, Simon Thompson, said: “For student landlords, the current market presents both opportunities and challenges.

“The growth in rental supply and moderating demand offer a chance to attract reliable tenants, particularly in high-demand areas like the North West.

“However, the need for rent price reductions in a quarter of properties signals affordability pressures.”

He adds: “The Renters’ Rights Bill, with measures like banning advance rent, could complicate securing tenancies in competitive regions which is why some student landlords will need to be aware of rent trends and react accordingly.”