Rental market update October 2025: average rents hit new record
Key takeaways
- National average asking rent reaches new record: £1,385 per calendar month (+1.5% this quarter, +3.1% since Oct 2024)
- Greater London average asking rent: £2,736 pcm (+0.9% this quarter, +1.6% since Oct 2024)
- Number of rental homes available: +9% since Oct 2024, but still -23% versus 2019
- Number of new rental listings: +1% vs Oct 2024
- Tenant demand: -14% vs Oct 2024
- Renters’ Rights Act given Royal Assent on 27 October, meaning the proposed changes to rental market legislation become law
The average asking rent reached a new high in October 2025 with London at £2,736 pcm and the national average at £1,385 pcm. Rental prices are still hitting record highs, but the pace of growth has started to settle, suggesting the market’s finding a steadier rhythm.
This rental market update comes against the backdrop of the biggest changes to rental market legislation in decades, the Renters’ Rights Act. Read more about what the changes could mean if you’re renting a home here, or if you’re a landlord navigating the changes.
The rental market at a glance
While rents in rose by 0.9% in London in Q3 2025, and national advertised rent climbed 1.5% during the same period, the total annual increases for the year ended October 2025 were 1.6% in London and 3.1% nationally.
It’s actually the smallest jump in rents we’ve seen since 2020, both across the country and in London. In terms of price growth, things are cooling after a few years of really sharp rises.
Stock levels are improving slowly: available homes are up 9% year‑on‑year. However, the total number of available rentals is still well below pre-pandemic levels, down 23% on 2019.
National average asking rent (excluding London)
| Quarter | Avg. asking rent per month | Quarterly change | Annual change |
|---|---|---|---|
| Q3 2025 | £1,385 | +1.5% | +3.1% |
| Q2 2025 | £1,365 | +1.2% | +3.9% |
London average asking rent
| Quarter | Avg. asking rent per month | Quarterly change | Annual change |
|---|---|---|---|
| Q3 2025 | £2,736 | +0.9% | +1.6% |
| Q2 2025 | £2,712 | +0.5% | +1.9% |
Source: Rightmove Rental Price Tracker, Q3 2025
Regional rental trends
Source: Rightmove Rental Price Tracker, Q3 2025
What’s happened to demand from tenants?
Affordability remains a challenge for tenants. The cost of renting still consumes 44% of the average wage – up from 40% five years ago. For renters saving to buy, the cost of a 20% deposit on a typical first home has also risen by just over £5,000 in the same period – from £40,326 in 2020 to £45,374 in October 2025.
Interestingly, demand for rentals has dropped 14% during the 12 months ended October 2025, with this contributing to the 9% annual increase in total available rental homes, despite just a 1% increase in new listings.
Daniel Fisher, Head of Lettings at John D Wood & Co says: “Tenant demand has eased as wider economic and political uncertainty makes people more cautious about moving, with many businesses scaling back relocations and some renters leaving London altogether. This has led to more re-let properties coming to market, even as the overall number of landlords declines. The result is a slower, more cautious market that’s likely to remain uneven over the next year or so – though this also presents opportunities for well-capitalised landlords to expand as others exit, and for tenants to benefit from a wider choice of homes.”
Quarterly changes in average rents:
Source: Rightmove Rental Price Tracker, Q3 2025
Which locations have seen the biggest change in average asking rent?
| Area | Region | Average asking rent per calendar month Q3 2024 | Average asking rent per calendar month Q3 2025 | Annual change |
|---|---|---|---|---|
| Fulwood, Preston, Lancashire | North West | £970 | £1,284 | +32% |
| Keighley, West Yorkshire | Yorkshire and The Humber | £815 | £1,038 | +27% |
| Frome, Somerset | South West | £1,305 | £1,660 | +27% |
| Newquay, Cornwall | South West | £1,115 | £1,372 | +23% |
| Gainsborough, Lincolnshire | East Midlands | £651 | £795 | +22% |
| Paisley, Renfrewshire | Scotland | £844 | £1,004 | +19% |
| Billericay, Essex | East of England | £1,837 | £2,173 | +18% |
| Prenton, Wirral, Merseyside | North West | £956 | £1,130 | +18% |
| Aigburth, Liverpool, Merseyside | North West | £1,053 | £1,241 | +18% |
| Burgess Hill, West Sussex | South East | £1,624 | £1,904 | +17% |
Source: Rightmove Rental Price Tracker, Q3 2025
What impact could the Renters’ Rights Bill have?
As of 27 October 2025, the Renters’ Rights Bill received Royal Assent, officially becoming law. It is expected that this will have a major impact the rental market over the coming months as tenants and landlords adjust to the changes.
Colleen 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.”
Read our full quarterly rental report here.
