UK Rental Market 2025: The Areas Tenants Love & Expert Analysis
Amid reports that over a third of households now rent their homes, the UK residential rental market has grown significantly and tripled in size.
As the forecasted demand for rental properties continues to grow, we analyse the data and speak to a large active letting agent, to give you insights on what is really happening on the ground for both tenants and landlords.
We have also summarised the data and have identified the UK’s most renter-heavy towns and cities by analysing key metrics such as the overall number of rented properties, university populations, employment rate and affordability, to identify the places tenants love with the highest tenant satisfaction.
At the bottom of the article, we have also provided a UK rental market statistics tool, where you can select your area and it will give you all the local data for how the local rental market is performing.
Article updated: August 2025.
UK Rental Market Statistics Summary 2025
- Stockport achieves the highest tenant satisfaction rate (91%) among all areas, while Bolsover is second at 87%.
- Manchester leads as the most renter-heavy city with 62% of households renting (outside of London).
- In London, Tower Hamlets has the highest rental percentage at 74%.
- London contains the highest absolute number of rental properties at 1,822,840, with Birmingham having the most rental properties (196,798) outside the capital.
- Burnley offers the most affordable house-buying ratio at 3.39, with Hartlepool (3.85) being the second most affordable area.
- Nottingham has the highest proportion of young adult resident demographic at 21%, followed by Cambridge, Oxford, and Exeter (all at 20%).
Contents - Letting Agents Insights
-
by Charlotte Puddy, Director of Abode Property Management (NW) Ltd
Established in 2011 Abode manages in excess of 500 properties across the North West. Charlotte and her husband, Jay, have a portfolio of their own properties and are currently actively buying and renting properties across Greater Manchester
As a letting agent on the ground, I can tell you the official figures, like the ONS report stating that average UK monthly private rents increased by 6.7%, to £1,344, in the 12 months to June 2025, only tell one part of the story. This annual growth rate is slowing and is actually down from 7.7% in the 12 months to March 2025.
For the national rental growth, average rents increased to £1,399 (6.7%) in England, £804 (8.2%) in Wales, and £999 (4.4%) in Scotland, in the 12 months to June 2025. Furthermore, in Northern Ireland, average rents increased to £852 (7.6%) in the 12 months to April 2025.
What the reports don't always capture is what we're actually experiencing day-to-day with landlords and tenants, which paints a much more nuanced, and at times, challenging picture.
UK Tenant Demand
Let's break down what's really happening:
6.7% rental market annual growth, the reports say.
What they don't capture is the sheer intensity of tenant demand. We're not seeing 2 or 3 applications per property; it's more like 15-20 serious enquiries, often within hours of a property going live.
For example, we recently listed a lovely two-bedroom terrace in Edgeley (for a buy-to-let landlord in Stockport). Within 24 hours, we had 18 viewing requests, and by the end of the week, we'd received 12 full applications. The property was let within five days of being advertised. This isn't an anomaly; it's our new normal.
Properties, especially those well-presented and realistically priced, are simply flying off our books. We're consistently finding tenants within a week, often quicker, for desirable properties.
In the past, tenants might have viewed five, six, even seven properties before making a decision. Not anymore. Now, it's common for tenants to make an offer after just one viewing. They're far less picky, and frankly, they can't afford to be.
We’ve seen situations where tenants are offering to pay six months’ rent upfront or even slightly above the asking price just to secure a property and get their AST. For instance, a young couple who viewed a flat in Davenport last month, after seeing only that one property, immediately submitted an application and offered an additional £25 a month to ensure they were chosen. It speaks volumes about the desperation in the market. Tenants are coming prepared, with all their documentation, ready to act quickly.
Rent Negotiations
Are tenants accepting asking rents or trying to negotiate?
The simple answer is: they're accepting. Negotiation for house buyers and tenants is a luxury in this market. With such high demand and multiple applicants for almost every property, tenants know that if they haggle, someone else will step in and pay the asking price.
We occasionally get an enquiry about a slight reduction, but generally, tenants are just relieved to find a suitable home and are willing to meet the asking rent. It's a landlord's market through and through.
Landlords Concerns - The Reality
Our landlords are a mixed bag. Many who've been with us for years are understandably confident, seeing their investments appreciate and their yields in their property strengthen. They're asking about the market's longevity, "Will this demand continue?" and "Is now the right time to expand my portfolio of property investments?"
However, there's a growing undercurrent of concern, particularly from landlords with existing mortgages. The rising interest rates are a significant worry and general concerns about mortgage arrears are rising.
I had a landlord, Mr. Davies, with a portfolio of three terraced houses, told me just last week that his mortgage payments have jumped by nearly £300 across his properties in the last 18 months. He's now asking, "How much can I realistically increase the rent without pricing out good tenants?"
They're focused on maintaining profitability and, crucially, avoiding void periods given their increased outgoings. The looming Renters Reform Bill is also a consistent topic of conversation, with many seeking clarity on how the changes will impact their ability to manage their properties and retain control.
Rental Market Forecast - How Landlords Can Plan for the Future
While I primarily operate in the North West, I speak to agents in other regions. What's clear is that while current rental growth and forecasted growth is a national trend, the pace varies. The ONS reported that in England, private rents annual inflation was highest in the North East (9.7%) and lowest in Yorkshire and The Humber (3.5%) in the 12 months to June 2025.
What we're seeing locally aligns with a strong pace of growth across the whole of the UK, even London buy-to-lets, while still expensive, seems to have seen some moderation in their steepest increases compared to the frenetic pace of a year or so ago.
Given what we're seeing on the ground, my advice to landlords is clear:
- Price competitively but realistically: While demand is high, don't get greedy. A well-priced property will still attract multiple offers, but overpricing will lead to it sitting empty, costing you more in the long run. Look at comparable local properties that have actually let, not just those advertised.
- Presentation is key: In a competitive market, properties that are clean, well-maintained, and presented in the best light will always stand out and achieve the best rents and quickest lets. Looking after tenants health and safety is a guaranteed requirement, but in addition, small investments in presentation can make a big difference.
- Be responsive and decisive: Good tenants are snapped up quickly. If you're slow to approve applications or make decisions, you risk losing out on quality tenants to other landlords.
- Understand affordability: While you need to cover your costs, be mindful of the significant financial pressure tenants are under. A small, reasonable increase for a good tenant at renewal might be better than pushing for the absolute maximum and risking a void period or a struggling tenant.
- Stay informed on legislation: The Renters Reform Bill is coming. Work with an agent who is up-to-date and can guide you through the changes to ensure you remain compliant and your investment is protected.
The rental market in the UK, particularly in major cities like Manchester and Birmingham, and even smaller towns like Oldham in the North West, remains incredibly strong from an on-the-ground landlord's perspective due to persistent demand and limited supply.
Contents - UK Rental Market Data & Statistics
-
by Robert Jones, Founder of Property Investments UK
With two decades in UK property, Rob has been investing in buy-to-let since 2005, and uses property data to develop tools for property market analysis.
Property Data Sources
Our property data research relies on diverse, authoritative datasets including:
- Gov UK: English Housing Survey
- ONS: Housing England and Wales
- ONS: Regional Labour Market
- Higher Education Statistics Agency
- Gov UK: National Public Transport
- Gov UK: Tenant Satisfaction Report
We update our UK rental market data annually to ensure accuracy. All data is presented as provided by our sources without adjustments or amendments.
UK Rental Market Data Explorer
Use this interactive tool to explore rental market data across the UK. Compare rental percentages, tenant satisfaction, affordability, and demographics to identify the cities tenants love. Data updated March 2025.
Showing data for: All Regions | Sorted by: Rental Market Share % (High to Low)
| Location | Rental Market Share % | Rental Properties | Tenant Satisfaction % |
|---|
Data updated March 2025.
© 2025 www.propertyinvestmentsuk.co.uk. Love our UK Rental Market Data Explorer tool? Please share this page with attribution.
UK Rental Market Statistics Finder
Select your region and then area to find statistics about the local rental market. Perfect for investors, landlords, researchers, journalists, and market analysts.
Your rental market statistics will appear here after selecting a region and area.
Conclusion
Manchester ranks as the top city for renters in 2025, with 133,126 rented properties, equivalent to 62% of households renting. The city’s bustling rental market is fuelled by its 88,997 university students, which is over four times the number in Norwich (21,375) and an impressive 2,788 transport stops. The city boasts a tenant satisfaction rate of 73%, outperforming Leicester (the lowest rated) by 22 percentage points (51%). Affordability is also low at 7.07 compared to London’s 13.51. Manchester’s young adult population of 17% compared to London’s 9%—and a 65% employment rate make it an attractive environment for renters.
Norwich ranks second, with 57% of households renting (36,985 properties). Though the city's 21,375 university students don’t quite match Manchester’s figures, the university population in Norwich continues to play a key role in driving rental demand. Norwich stands out with 1,219 transport stops, 40% more than Cambridge’s 730, and a strong 73% employment rate. Tenant satisfaction in the city is strong at 64%, and an affordability ratio of 7.03 continues to attract renters. The city’s peaceful atmosphere, supported by an older population of 15% seniors compared to Manchester’s, offers a more tranquil living experience.
Solihull stands out for its 81% tenant satisfaction and 27% young adult population, attracting a dynamic mix of renters. The area successfully balances high renter demand with tenant satisfaction, making it an attractive option for both young professionals and families.
Oxford’s 78% tenant satisfaction rate shows its strong appeal as a rental market. High demand is driven by 46,250 university students and a strong local economy, with 53% of residents renting. However, homeownership is out of reach for many due to high costs, with property prices rising 10% to an average of £549,581, making renting the main option for younger people.
London remains the UK’s largest rental market, with over 1.8 million rented properties. However, affordability remains a significant challenge in the capital, with unsurprisingly, the highest affordability ratio (13.51) among all cities analysed. Despite this, London’s extensive transport network with 19,430 transport stops and 76% employment rate continues to attract renters, cementing its position as a dominant player in the rental market.
Rochford stands as one of the UK’s least renter-heavy cities, with just 19% of households renting. The town has just 6,679 rented properties, and although tenant satisfaction is high at 72%, it remains a quieter, more suburban area compared to rental hotspots like Manchester. Rochford’s affordability ratio of 9.15 indicates that while housing is more accessible than in larger cities, renting remains a less popular choice in the area. With only 33 transport stops and a modest young adult population (18-24) of 6%, Rochford maintains a tranquil, family-oriented environment, appealing primarily to homeowners rather than renters.
Fareham and Bromsgrove both have 21% of households renting and high tenant satisfaction, standing at 84% in Fareham and 78% in Bromsgrove. With affordability ratios of 8.97 and 8.72, respectively, these towns offer more affordable living in peaceful, suburban settings. Their smaller rental markets attract residents seeking a quieter environment, with both having a low young adult population (6%).
Stroud leads in the proportion of young adult renters, with 26% of its population aged 18-24. This makes it a vibrant destination for younger renters who are drawn to its modest rental rates and lively community.
Since the UK's housing crash in 2008 and balancing of prices, the UK rental market is shifting towards areas that offer a balance of affordability, tenant satisfaction, and community appeal. Cities like Manchester and Liverpool are thriving due to strong university populations and purpose-built student accommodation, robust job markets and improved infrastructure. However, the success of rental markets (and the best buy-to-let locations now relies on more than just the number of renters – it’s about the quality of life in these areas.
For investors, tenant satisfaction is becoming a critical factor. High-performing rental markets combine affordability, good transport links and local amenities. Locations with high tenant satisfaction present opportunities for long-term capital growth. These areas are increasingly attractive to families and young professionals seeking a peaceful, affordable environment.
As the demand for flexible housing grows, smaller cities and suburban markets are showing strong investment potential. The work-from-home trend continues to shift demand outside major cities, making suburban hubs increasingly lucrative for investors.
Looking ahead, areas with a mix of affordability, tenant contentment, and diverse demographics will offer the best returns. By focusing on these high-potential locations, investors can tap into the long-term growth of the UK rental market and ride the property cycle.