Rents Rising, Rules Tightening: UK Rental Market Update (11 September 2025)
Rents are climbing, supply is shrinking, and new rules are on the horizon. This week’s update unpacks the pressures facing landlords, agents, and tenants, and why compliance and efficiency matter more than ever.
Today’s news shows that the supply of rental homes is falling just as new rules are about to take effect, which is keeping pressure on rents despite a slight easing on buy-to-let mortgage rates. For landlords and agents, fewer properties and uncertain rules argue for rigorous compliance planning and careful leverage decisions. The focus now is on running things efficiently, with better tenant checks, smoother compliance processes and stronger portfolio management, as returns depend more on good operations than rising property values.
The Top Headlines:
- Buy-to-let mortgage costs hit three-year low
Average two-year BTL fixes dropped to 4.9% and five-year to 5.2% as lender competition intensifies, with available BTL products doubling to 4,600. Analysts say cheaper debt is helpful but may be short-lived and hasn’t reversed weak investor appetite.
Source: Financial Times - Landlords selling ahead of the Renters’ Rights Bill
The Times reports landlords offloading properties in anticipation of reforms, with one large franchise group’s managed portfolio down from 153,000 to 150,000 homes. Proposed Section 21 abolition and tighter standards are cited among key drivers.
Source: The Times - “Instructions have plummeted,” says sector press
Trade outlet LandlordZONE flags the steepest fall in new landlord instructions since April 2020, echoing RICS data, and warns of intensified competition for fewer rentals.
Source: LandlordZONE - PropertyWire: Fewer landlords looking to buy; rents seen rising around 3%
PropertyWire’s read-out of the RICS survey notes a slump in landlord purchase activity and forecasts rent growth around 3% over the next year due to constrained supply.
Source: PropertyWire - Telegraph: Tax talk and reform fears deepen rental supply squeeze
Coverage links fast-falling listings to anticipated tax changes and regulatory reform, reinforcing the picture of a tightening PRS.
Source: The Telegraph
Landlords & agents: Review your compliance processes now and put systems in place to stay ahead of upcoming requirements. LightWork AI reduces the admin of property management by automating compliance and maintenance tasks, freeing you to focus on strategy and growth.
If compliance or efficiency is on your agenda, contact LightWork AI to see how we can help, or book a demo below.