Under Pressure: UK Rental Market Update (18 September 2025)

The iconic Queen and David Bowie track Under Pressure feels like the perfect soundtrack for the private rented sector this week. With rental supply shrinking and demand climbing, the PRS is, quite literally, under pressure.

Today’s headlines show that while house prices may be easing and mortgage rates are stabilising, the private rented sector is still facing mounting strain. A wave of landlord sell offs, the looming Renters’ Rights Bill, and rising insurance risks are all tightening supply just as tenant demand continues to grow. For landlords and agents, this points to the need for sharper compliance preparation, robust tenant management, and efficient operations as regulation tightens and margins narrow.

The Top Headlines:

Santander: Half a million home sales collapse each year
Over 500,000 property transactions fail annually, costing buyers over £1,200 each and the wider economy £1.5bn. Santander is calling for digitalisation and better upfront data to modernise conveyancing.
Source: Financial Times

Slower house price growth ahead, easing affordability
Analysts forecast UK house prices rising just 2.6% in 2025 and around 3% thereafter. Wage growth and steadier mortgage rates are helping first-time buyers, though sentiment remains fragile.
Source: Reuters

Rightmove: Asking prices dip, supply rises in the South
Average asking prices fell 0.1% year-on-year to £370,257, with more homes for sale in southern England. Sales agreed are up 4% on last year, but affordability remains stretched at ~5% mortgage rates.
Source: MoneyWeek

Rising subsidence risks linked to summer heat
Hot weather and shrinking clay soils are driving more insurance refusals and costly repairs such as underpinning, particularly in older homes.
Source: The Times

Landlords selling ahead of Renters’ Rights Bill
Portfolio sell-offs are accelerating, with major agents reporting declining managed stock. Section 21 abolition and higher compliance standards are key drivers.
Source: The Times

Renters’ Rights Bill delayed until after party conferences
Royal Assent is now unlikely before mid-October, pushing implementation of reforms like Section 21 abolition and rolling tenancies into early 2026. Secondary legislation will determine the precise start dates.
Source: Connaught Law

Section 21 eviction followed by rent hike sparks outcry
A London family evicted under no-fault rules saw their property re-let at nearly £1,000 more per month. The case has intensified scrutiny of landlord practices and strengthened calls for reform.
Source: The Guardian

Landlords & agents: Use this period of delay to your advantage. Review tenancy agreements, strengthen rent review and compliance processes, and assess portfolio risk. Those who prepare early will adapt smoothly when the Bill comes into force.

LightWork AI helps property managers and landlords stay ahead by automating compliance, tenant checks and maintenance workflows freeing you to focus on strategy, not admin.

If compliance or efficiency is on your agenda, contact us or book a demo to see how we can help future-proof your operations.