The North West and Yorkshire & the Humber saw the strongest rental growth across the UK in 2025, Rightmove data shows.
In the North West rents rose by 3.6% and in Yorkshire & the Humber 3.1%, surpassing regions like London (0.8%) and the North East (0.4%).
Across the UK as a whole, rents rose by 2% in 2025, while Rightmove predicted a further increase of 2% in 2026.
Colleen Babcock, Rightmove’s property expert, said: “There is still a long-term shortage of available rental homes, but it looks like landlords are taking advantage of cheaper available mortgage rates, and more available homes will benefit tenants.
“Existing tenants or those looking to rent their own home for the first time are likely to experience a much more settled and balanced market than a few years ago, when the competition to secure a home was frenetic.
“There is much greater availability of homes, and fewer tenants to compete with now, which should hopefully make the experience more positive for renters.”
The total number of available homes to rent is currently 9% higher than last year.
However, looking longer term, the number of available rental properties has dropped by a third (-33%) compared with ten years ago, illustrating the chronic shortage of rental property.
There are some positive indicators for the future supply of rental homes.
The number of new buy-to-let mortgages taken out to purchase rental homes in the year to October was 13% in 2025 versus the same period in 2024, while the number of remortgages increased by 23%.
Nathan Emerson, chief executive of Propertymark, said: “These figures show the rental market is gradually moving away from the volatility of recent years and towards a more balanced position. Slower annual rent growth and modest quarterly falls in some areas will offer some relief to tenants after a prolonged period of sharp increases.
“However, moderation should not be mistaken for recovery. Rental supply remains well below the pace needed across the long-term to stay in keeping with demand. While competition has eased, demand is still higher than pre-pandemic norms in many parts of the country. This imbalance continues to place upward pressure on rents.
“Improving buy-to-let mortgage affordability and working objectively to renew landlord confidence are encouraging signs, but long-term policy stability will be essential if this is to translate into a sustained increase in supply. Without this, rents may rise more slowly but are unlikely to fall.
“Moving further into 2026, a steady increase in rents reflects a market that is calmer, but still constrained, underlining the need for continued investment in the private rented sector.”