Rising Rental Demand Puts Pressure on UK Tenants

Introduction

The UK rental market remains under strain as tenant demand continues to outpace supply. In 2025, the average rent across England and Wales has climbed to record highs, with competition intensifying for affordable properties.

What's Driving the Demand?

Higher mortgage costs have pushed many would-be buyers back into the rental market. At the same time, landlords are facing stricter regulations and higher running costs, leading some to sell up - further reducing available rental stock.

Tenant Challenges

In major cities like London, Manchester, and Bristol, renters report viewing queues of over 20 people per property. Average rental increases of 6-8% year-on-year have become common, particularly for well-located flats and energy-efficient homes.

Outlook for 2025

Experts believe the imbalance between demand and supply will persist into 2026 unless government housing policy accelerates new rental developments. For tenants, flexibility and early applications remain key to securing suitable accommodation.