Supply Pressures and Looming Budget: UK Rental Market Update (13 November 2025)

This week’s UK property market headlines reflect a sector under pressure from slowing demand, rising regulatory scrutiny, and shifting expectations ahead of the Autumn Budget. Official data shows rents continuing to climb while sales activity weakens with new forecasts highlight how supply shortages are amplifying already intense tenant demand. At the same time, enforcement action is ramping up across the PRS, signalling a tougher compliance environment for landlords and agents as the Renters’ Rights reforms take effect.

The Top Headlines:

1. UK housing market ‘cooling’ amid uncertainty over Autumn Budget
   The Royal Institution of Chartered Surveyors (RICS) survey reports buyer demand, agreed sales and new listings all slumped further in October. This is the weakest since 2021 with net balances of -24 % in enquiries and sales. Many participants in the survey cited fears of upcoming tax changes (stamp duty, Capital Gains Tax, inheritance tax) ahead of the Budget as the primary reason for dampening activity. Source
2. ONS: latest rent and house price tracker (for October)
   Recent updates to the ONS combined private rent and house price bulletin show average UK monthly private rents increased by 5.5 % to £1,354, in the 12 months to September 2025. The release provides the freshest official read-across ahead of the Budget. Source
3.  Build-to-Rent supply still fails to meet PRS demand, says Savills
   Savills warns that Build-to-Rent delivery remains insufficient to meet the needs of the PRS, with only around 15,000 new homes completed each year against a backdrop of 4.9 million households. Supply pressures have been intensified not just by limited development, but by unprecedented high tenant demand (between 2021-2023). The surge driven by a spike in post-lockdown migration resulting in 600,000 extra households over the past five years. Source
4. Landlords face increasing regulatory burden amid new Renters' Rights rules
   With the new PRS reforms and regulatory expectations rising, landlords are now facing increased compliance demands (landlord database, tenures, reverse of Section 21 evictions) which may increase operational cost and risk. NRLA reports 28% of landlords are reviewing their portfolios and considering exiting the market. Source
5. Landlord hit with nearly £40,000 Rent Repayment Order for unlicensed HMO in central London
   A landlord was ordered by the First-tier Tribunal to repay £35,814 after operating an unlicensed HMO in central London. The four tenants who resided there reported to the council that no license had been acquired. Upon inspection by Westminster council, the proeprty was found to have damp, mould, and missing smoke alarms. The Tribunal ruled that liability rested with the person named as landlord on the tenancy agreement. Source
6. Wandsworth Council launches major crackdown on rogue landlords
   The council has carried out over 100 inspections since July and issued more than 40 enforcement notices as part of its borough-wide licensing drive to improve rental standards. Inspectors found homes with undersized bedrooms, missing fire doors, blocked escape routes and no heat or smoke alarms. Further warning to unlicensed landlords could face fines of up to £30,000 or rent repayment orders up to 12 months’ rent. Source

Why this matters

• For investors and landlords, the cooling property market and looming tax reforms signal that value-growth and returns may become more modest in the short term. Affordability and tax risks should factor more heavily into acquisition and exit planning.
• For lettings agents and property managers, the Renters’ Rights Act introduces a new compliance frontier. Professional management and compliance will be critical to success under the new regime.