2025 outlook for the rental market

2025 outlook for the rental market

What is the current demand for rental property and are rents set to increase?

According to Rightmove, there will be a nationwide increase in asking prices for new rental properties of around 4% this year.

Locally, we have seen an increase in the number of rental properties available during the first quarter of 2025, which has stabilised rents somewhat, but as tenant demand remains very strong, the negative impact on rental values has not been significant.

However, as we move through Spring and into the Summer, several economic factors and imminent legislative changes are likely to affect supply and demand in the market, which will impact rents going forward.

The Renter's Rights Bill, which is currently making it's way through parliament, will introduce stricter curbs on rent increases alongside broader reform, and whilst the changes will have limited impact on landlords who offer good quality properties, some landlords may choose to review their portfolios and exit the market in light of the new rules.

We have already seen that fewer investors are entering the sector, deterred by the changes making buy-to-let more complex and which have added to the cost of entry. These include increases in interest rates and the raising of the stamp duty surcharge on second homes from 3% to 5%.

So in the light of a potentially limited supply, and increased cost to the landlord, as demand for good quality rental property remains very high, a widespread hike in rents overall in 2025 does look likely.

We can of course only share our experience of the local market as we see it, and as of today, Gibson Honey are registering many tenants looking for homes in our area. If you are considering letting your property, or would like to find out more about the rental market in general, our team of experts are here to help.

01895 625999
lettings@gibsonhoney.co.uk



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