Rental market conditions normalise as supply and demand rebalance ⚖️
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🏘️ UK Rental Market Report – September 2025: What’s Changing & Why It Matters
📝 Key Takeaways
✅ Rental demand down 24 %, supply up nearly 20 %
✅ Rent growth slowing — softest market in 5 years
✅ East Midlands leading in supply growth
✅ Migration and mortgage trends driving change
✅ Good opportunities for renters, buyers and landlords alike
Zoopla’s latest Rental Market Report (September 2025) shows a market gradually rebalancing after years of intense pressure between supply and demand.
As mortgage access improves and more rental homes come onto the market, we’re starting to see a cooling in rent growth and a shift in tenant-landlord dynamics. Here’s what you need to know 👇
📊 1. Key Trends & Takeaways
📉 Rental demand is 24 % lower year-on-year, driven by lower migration and more first-time buyers entering the market
🏠 Supply is up nearly 20 %, thanks to returning landlord investment and more homes switching from sale to rent
🪙 Rents for new lets are 2.4 % higher than last year, the slowest annual growth since 2020
🌆 Some cities like Leeds and Bristol are already seeing rents fall slightly as supply improves
📅 Overall, this is the softest rental market in five years, signaling a return to more balanced conditions
📌 2. Rental Figures & Regional Differences
💷 The average UK rent for new lets is £1,301 (as of July 2025)
⬇️ Rental inflation has slowed sharply from recent peaks, now at 2.4 % year-on-year
🏙️ London supply is up just 6 %, lagging behind other regions. Yields remain modest at ~5 %, and barriers to entry for landlords are high
🌄 The South West (+36 %) and East Midlands (+31 %) lead the way on increased supply — great news for renters looking for more choice
👉 Nottingham and the wider East Midlands are among the standout regions, with more rental homes available and a slower pace of rent growth — good news for both tenants and investors
🔄 3. What’s Driving the Shift?
🌍 Lower migration is easing demand, especially from overseas renters
🏡 Improved mortgage access is allowing more renters to become first-time buyers
🔁 Some sales listings are shifting to rental stock, boosting availability
🧾 Buy-to-let investment is rising again — new BTL mortgage completions are up ~60 % year-on-year
📈 Rental yields remain attractive outside London, supporting renewed landlord interest
🔍 4. What It Means for Renters, Buyers & Landlords
🧍 Renters / Tenants
✅ More choice as supply improves
📉 Slower rent increases provide some relief after years of sharp rises
🤝 More room to negotiate rent or contract terms in some areas
🏡 Buyers / First-Time Buyers
🪜 Easier mortgage access means more renters are transitioning into ownership
📊 Local rental trends and yields are key factors when choosing where to buy
🏠 Areas like the East Midlands offer a favourable balance between price and yield
🧑💼 Landlords / Investors
💼 Yields remain healthy, but competition is increasing
🧱 Investment in property quality (e.g. energy efficiency, upgrades) will help stand out
⚠️ In London, high barriers (deposits, regulations) may deter some investors
📝 5. Outlook for Late 2025 & Beyond
📆 Zoopla forecasts rent inflation of 2–3 % for the remainder of 2025
⚖️ The market is moving toward better balance, but home ownership affordability still keeps many in the rental sector
🏘️ Continued rental investment is essential to maintain this progress
🧭 Key trends to watch: migration flows, mortgage lending to FTBs, rent-to-income ratios, and landlord confidence
👉 For Nottingham and the East Midlands, these trends mean a healthier, more sustainable rental market with more choice and stability.
Wouldn't it be good to know the value of your home in today's market? Contact Lisa (lisa.dahl@cavendishproperty.co.uk) for an up-to-date valuation (or complete the form opposite ➡️).
📸 Lisa Dahl-Parsisson, Head Valuer and Asset Manager at Cavendish Residential 📸
📸 LEAD IMAGE | FOR RENT by Cavendish Residential 🌆 Stylish 3-bedroom duplex penthouse in Nottingham’s Lace Market — modern open-plan living, private terrace, and city-centre convenience. Furnished and ideal for sharers, this apartment offers a vibrant urban lifestyle. Monthly rent: £2,500 ✨
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