The recent publication of the Rightmove Rental Trends Tracker* for Q2 2025 reveals a rental market that’s still evolving. While average rents continue to hit new highs, there are signs of a gradual rebalancing as yearly rent increases continue to slow.
The balance between supply and demand is improving as the market continues to cool and recalibrate after the frenzy of the 2021-22 pandemic years. With more homes available and tenant demand easing slightly, both landlords and renters are navigating a shifting landscape.
Here’s some of the key takeaways from the Rightmove report:
Rents still rising, but at a slower pace
Average asking rents outside London have reached a record £1,365 per month, rising 1.2% this quarter and 3.9% year-on-year – the slowest annual growth since 2020.
The South West has performed better, with the average rent now standing at £1,480 per month, marking the 15th consecutive quarterly increase rising 2.3% this quarter and 4.3% year-on-year.
Since early 2020, average rents outside London have jumped by £417 per month (a 44% increase), compared to a 36% increase in average earnings. Affordability is still under pressure, but the slowing pace of growth suggests the market is starting to stabilise.
More properties, less competition
The number of homes available to rent is up 15% compared to last year. However, total availability remains 29% below pre-pandemic levels.
At the same time, the number of prospective tenants looking to move has dropped 10% year-on-year. The average rental property now receives around 11 enquiries, down from 16 a year ago. While competition is still higher than before the pandemic, tenants have more breathing room when it comes to choosing a home.
Letting times and price adjustments
As the market cools slightly, rental properties are taking longer to let. The average time from listing to “let agreed” is now 25 days, compared to 21 this time last year. In addition, 24% of listings saw a rent reduction during marketing—the highest proportion since 2017.
This suggests that tenants are becoming more price-sensitive. Landlords should avoid overpricing, as unrealistic rent expectations can lead to extended void periods or necessary reductions.
Investor confidence grows
Despite regulatory challenges, buy-to-let investment is rising. Lending to landlords increased by 17%, with a 28% surge in purchases of new rental homes. This uptick in investment is helping to improve rental stock in key areas.
For landlords, this indicates growing confidence in long-term rental demand. However, the days of automatic rent increases and rapid lets may be easing, making accurate pricing and quality presentation more important than ever.
What this means for you
Tenants:
You now have a bit more choice and slightly less competition. While rents remain high, the pace of increases is slowing, and more landlords are open to negotiation.
Landlords:
With more properties entering the market and demand softening slightly, standing out is essential. Well-presented, competitively priced properties will let faster and avoid costly void periods.
At Victoria Allman Lettings, we help landlords stay ahead of market changes and support tenants in finding homes that suit their needs and budgets. If you’re thinking of letting or renting in the South Cotswolds area, we’d love to chat about how we can help.
* The Rightmove Rental Trends Tracker is the largest quarterly dataset of UK rental activity. The dataset is compiled from the asking rents of properties coming onto the market on Rightmove.co.uk and measures prices at the very beginning of the rental process. For the Q2 report, Rightmove measured 403,252 asking rents for properties advertised from 1st April – 30th June 2025.
