13 Rental Market Statistics for 2025

The UK rental market is undergoing significant changes in 2025. As demand, rent prices and pressure for more housing all continue to rise, the landscape is becoming increasingly competitive all across the country. 

In this blog, we’ll cover the top 13 rental market statistics in 2025 and what these say about renting trends for the next year.

Looking to rent your own property? At JonSimon, we have a brilliant range of properties to rent in the Greater Manchester area to suit a wide range of renters. 

So without further ado, let’s get into some stats.

1. The average monthly rent payment in England is £1,336. Wales and Scotland have lower rates, with an average of £760 for Welsh tenants and £973 for Scottish residents (Source: PropertyAuctionAction). England has the highest population density and is home to some of the UK’s biggest cities, so the higher average price is a reflection of this, as well as factors like demand. 
2. Co-living spaces have grown, and development for these properties has shot up. The UK currently has 7,540 co-living units, and developments have increased by 65% (Source: KnightFrank).
3. The property letting market is expected to change in 2025, with 67% of landlords reporting they want to leave the rental sector or reduce the amount of properties they let (Source: SpareRoom). This is thought to be due to increased costs of living and is believed to further increase the supply and demand issues in the rental sector.
4. Demand for properties is clear, with an average of 10 applications per rental property (Source: PropertyAuctionAction). This is twice the number before the pandemic, highlighting how competitive the rental market has become in the past 4 or 5 years.
5. The economy is showing a steady progression and more favourable conditions if you’re considering becoming a landlord. Mortgage rates are expected to decrease below the current 4%, making buying properties and renting a more stable and affordable option (Source: Winkworth).
6. The North West of England has seen a 9% annual increase in rent costs. In March 2025, the mean monthly cost for a 1-bedroom property was £958 in Manchester. This cost was cheaper on the outskirts of Greater Manchester, with Bury averaging at £645 pcm and Burnley costing £437 (Source: Gov.uk). This means that if you choose to rent in the Bury area or are looking for properties in Burnley, you’ll be able to save money whilst still benefiting from the amenities of a major city close by.
7. Private renters make up a large percentage of households, accounting for 19% of households in 2023. These statistics are expected to rise even further in 2025 (Source: Gov.uk).
8. There are now more standards and regulations in place to improve the quality of rental housing across Great Britain. The Future Homes Standard is now mandatory for rental properties in 2025. These regulations mean that new homes need to produce 70-80% less carbon emissions and have better ventilation, energy efficiency, and heating and water systems (Source: PropertyAuctionAction).
9. Although rental demand is still 24% higher than before the pandemic, inflation has begun to slow to 5.4% (Source: Winkworth). The current demand offers more opportunity for landlords to make higher profits, but government efforts to address housing shortages and costs are predicted to level the market over time.
10. Unsurprisingly, London still has the highest rental rates and has seen the highest level of inflation in rent annually at 11%. The average rent in London is now around a whopping £2,227 per month as of February 2025 (Source: Office for National Statistics)
11. Students have also found an increase in their rent in recent years, with the average cost sitting at £563 per month and £812 per month in London. Many students rely on student finance to cover these costs, with the rates for student accommodation being similar to those of standard housing in areas like Bury. Rental costs have also been found to negatively impact students, with 68% of students stating that the high rent costs affect their mental and physical health (Source: Save The Student).
12. Co-living residents are recorded as being between the ages of 26 and 40 years old. These adults are typically working professionals who have chosen to rent shared homes for the increased flexibility, social interaction and convenience these co-living spaces provide (Source: KnightFrank)
13. 26% of rental properties have had their asking rent reduced in 2025. This is due to renters hitting the affordability ceiling alongside landlords wanting to keep their tenants (Source: Rightmove). 

What do these statistics mean for the rental market?

Within the UK rental market, evolution is constant. Renters and landlords alike are facing both new challenges and opportunities each year. The demand for rental properties is clear, but the slow stabilising of the economy and mortgage rates means the potential for new investment is still high.

In terms of pricing, it’s clear that places like Burnley and Bury offer the optimal balance between location and affordability. If you’re interested in renting a property in Greater Manchester, we’re here to help at JonSimon. 

We make the process simple for renters and landlords and help sort out all the documents and payment procedures. We also have several exclusive, stunning properties to let. 

Get in touch today to find out more.