A decade of change in Britain’s rental market
Rental stock rises in England but falls in Scotland and Wales as rents increase by 45% over the last decade
New research by LegalforLandlords reveals that Britain’s private rented sector (PRS) has grown by an estimated 6.6% over the past decade. However, while rental stock has increased overall, significant regional differences have emerged across England, Scotland, and Wales.
Analysis of rental market data between 2015 and 2025 shows that the estimated size of Britain’s PRS has increased from 2.98 million rental properties to 3.17 million, representing growth of 6.6%.
England adds rental homes while Scotland and Wales see supply contract
The overall increase in rental stock has been driven by growth in England, where the number of rental properties has risen by 10.1% over the last ten years, adding more than 240,000 homes to the market.
In contrast, both Scotland and Wales have seen a reduction in rental supply over the same period, with rental stock declining by 6.3% and 10.6% respectively.
The figures highlight how the size of the private rented sector has evolved differently across Britain over the last decade, against a backdrop of varying housing policies, regulatory changes, and market conditions.
However, this headline growth masks a stark national disparity.
Average rents rise by more than 45%
Over the same period, average rents across Great Britain have increased substantially.
In 2015, the average monthly rent stood at £924. By 2025, this had reached £1,343 per month, an increase of 45.3%.
The rise reflects sustained demand for rental accommodation, alongside wider housing market pressures and a limited supply of homes in many areas.
House prices have increased even faster
While rents have grown significantly, house prices have risen at an even faster rate.
The average house price across Great Britain increased from £178,966 in 2015 to £270,783 in 2025, representing growth of 51.3%.
As a result, average rental yields have remained relatively stable despite substantial rent growth.
The average yield stood at 6.2% in 2015, compared to 6.0% in 2025.
A decade defined by stability amid change
The findings suggest that Britain’s rental market has undergone significant change over the last decade, while delivering relatively consistent returns for landlords despite rising property values, regulatory reforms, tax changes, and periods of economic uncertainty.
Sim Sekhon, Group CEO at LegalforLandlords, commented:
“These figures paint a fascinating picture of how Britain’s rental market has evolved over the last decade. While rental supply has increased overall, the divergence between England, Scotland, and Wales is particularly striking and may reflect how different policy environments influence landlord confidence and investment decisions.
At the same time, rents have risen substantially as demand has continued to outpace available housing, creating affordability challenges for many tenants. What’s notable is that despite rents increasing by more than 45%, landlords have not seen a corresponding increase in yields because property values have risen even faster.
The result is a sector that has demonstrated resilience through a period of significant regulatory change, tax reform, economic uncertainty, and shifting tenant expectations. As policymakers continue to consider reforms to the private rented sector, maintaining a healthy balance between tenant protections and investment incentives will be essential if rental supply is to keep pace with demand in the years ahead.”
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