Buy-to-let landlords have remained active in the UK rental market, with 2025 closing on steady growth despite ongoing affordability pressures and softer demand in some areas.

According to Lomond’s Quarterly Insights Report (Winter 2025/26), the national average rent rose to £1,602 per calendar month — a 4.9% increase compared with 2024. While this represents continued growth, it is notably more measured than the sharp spikes seen in previous years, suggesting the market is stabilising rather than overheating.

Regional Trends Across the UK

The South Coast led the way, with average rents rising 10.5% to £1,774pcm. Demand in Brighton, Southampton, Portsmouth and Worthing has continued to outstrip supply, particularly for well-presented two- and three-bedroom homes.

London recorded more modest growth of 1.5%, bringing average rents to £2,395pcm — still 49% above the UK average. Despite regulatory changes following the Renters’ Rights Act and Budget announcements, both inner-city and suburban markets remained steady, highlighting continued landlord and tenant confidence.

The Midlands and North West saw sustainable increases of 5% and 4% respectively, with city-centre furnished homes proving especially popular.

Interestingly, Scotland recorded a slight 1% dip in rents but saw a 38% rise in new landlord instructions — signalling renewed landlord confidence and appetite for investment.

What This Means for York Landlords

Here in York, we’re seeing similar patterns to the Midlands and North West — steady, sustainable rental growth rather than dramatic surges. Demand remains strongest for:

  • Well-maintained two and three bedroom homes
  • Properties close to the city centre or strong commuter links
  • Homes with good EPC ratings and manageable running costs

With tenants increasingly focused on energy efficiency and property condition, landlords who invest in presentation and compliance are achieving quicker lets and stronger long-term tenancies.

Buy-to-Let Lending Stabilising

Buy-to-let mortgage activity fell sharply between 2023 and 2024, but steadied throughout 2025, now accounting for around 8–9% of new mortgage lending. This tells us landlords haven’t left the market — they’re simply acting more cautiously and strategically.

For York investors, this is important. The market isn’t collapsing — it’s maturing. Rents are rising at a manageable pace, void periods remain controlled when properties are correctly priced, and well-run portfolios continue to deliver consistent returns.

Entering 2026 on Solid Footing

Despite the changes brought by the Renters’ Rights Act and ongoing economic pressures, the UK rental sector ended 2025 demonstrating resilience. The conversation is shifting from uncertainty to execution — focusing on compliance, quality housing, and long-term sustainability.

For landlords in York and surrounding areas, the message is clear:
Professional management, proactive maintenance and strategic pricing are more important than ever.

If you’d like a tailored rental appraisal or portfolio review, the Littlefairs team is always happy to help.