The headlines from the latest UK Rental Market Index from Hometrack are:
- Rental market conditions are the weakest for 5 years, with demand down 24% and supply up 20% year-on-year.
- Rental inflation has hit a 4-year low of 2.4% due to the re-alignment of supply and demand, and renter affordability pressures.
- Supply is rising from new landlord purchases, tenants ending leases, and homeowners who can’t sell their properties listing them for rent.
- The decline in demand is driven by a sharp drop in migration levels and an improved mortgage market for first-time buyers.
- London is the only region where supply is down – in part because landlords continue to face low yields and high deposit requirements (£187k deposit for an average BTL purchase).
You can read the full report online for the September 2025 UK Rental Market Report on the Hometrack website.