Rightmove data and commentary as Renters’ Rights gets Royal Assent
The UK’s largest property platform Rightmove shares data and commentary on the rental market as the Renters’ Rights Bill finally gets Royal Assent and becomes law.
Key market data
- The average advertised rent of homes outside of London has reached a new record of £1,385 per calendar month (pcm). Average rents outside of London are now 3.1% higher than a year ago
- Average advertised rents in London have also reached a new record of £2,736, however rents in the capital are now only 1.6% higher than a year ago
- The total number of homes available to rent continues to edge closer to pre-pandemic levels, however the pace of new rental properties coming onto the market has slowed:
- The number of available homes to rent is now 9% higher than this time last year. Though this figure is still 23% below this time in 2019, it’s the closest to pre-pandemic levels of supply for four years
- However, the number of new rental listings coming onto the market is only 1% above this time last year, the lowest this figure has been in 2025
- Affordability remains very stretched for both tenants and landlords looking to invest in the rental sector:
- Despite average earnings rising by 5% compared with last year and outpacing rent rises, the cost of renting still takes up 44% of the average wage, up from 40% five years ago
- Meanwhile, a 20% deposit for a typical first home has risen by £5,000 over the last five years
- The average interest rate on new buy-to-let mortgages stands at 4.87% according to UK Finance. Whilst down from last year, it is nearly double the 2.93% seen before the mini-Budget in 2022
What could the impact be on tenant trends?
Colleen Babcock, Rightmove’s property expert says: “The legislation is intended to give tenants more security and flexibility in their rental home. In terms of tenant behaviour, we’re already seeing a trend of some tenants staying put for longer, and this legislation could increase that further. In our data, pets are the number one thing renters search for when looking for a rental home, so the move to give tenants the right to request a pet should have a big impact.”
How are landlords feeling?
- Less than half (43%) of landlords surveyed said they were fully aware of the Renters’ Rights Bill and its key elements and felt prepared for the changes
- Over a fifth (21%) said they either didn’t know much about it, or weren’t aware of it at all
- One in three landlords say they are considering exiting the market at some point in the future, with two-thirds (66%) feeling unsupported by the government
- Legislative changes such as new taxation and regulation (68%) topped the list of landlord frustrations which is driving some to plan on decreasing their property portfolio over the next year
- However, in the short-term, half (51%) of surveyed landlords plan to maintain the size of their portfolio over the next twelve months, and 20% were looking to increase it
- Nearly a third (29%) said that rising mortgage rates were affecting their plans to expand their property portfolio
- Nearly one in five (17%) said that high mortgage rates meant they were considering reducing the size of their portfolio
What could be the impact on landlords?
Christian Balshen, Rightmove’s Director of Agency Partnerships says: “The new legislation is a big change for landlords and it’s vital that they remain compliant. Selecting the right agent to work with, to understand and prepare for the changes, will be crucial. Landlords have always prioritised selecting a reliable tenant who wants to be in their home long-term, so it’s likely they’ll be even more involved in the process of choosing the right tenant for their home with these legislative changes.”
Colleen Babcock, Rightmove’s property expert adds: “The majority of landlords are looking to stay in market and even grow their portfolios which is positive for tenants, but there are clearly challenges for those looking to invest in rental property. Continued high mortgage costs mean that landlords need to make sure that the numbers still add up when investing in rental property. Landlords who were considering selling up over the next year told us that legislation changes were their biggest source of frustration. The government needs to consider this when setting its policy agenda over the next twelve months, otherwise we may see more landlords choose to leave the sector which will be to the detriment of tenants.”
What impact could Renters’ Rights have on letting agents?
Christian Balshen, Rightmove’s Director of Agency Partnerships says: “The Renters’ Rights Bill marks a massive change in lettings processes, how tenancies are set up and there is a cost to getting it wrong. Over the coming weeks, lettings agents have an opportunity to guide and reassure their landlords. There is training and resources available to agents to make them feel confident ensuring their landlords remain compliant. Many landlords will no doubt have a lot of questions for agents, and there is an opportunity for agents to be the expert with the answers.”
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