Despite reduced supply, demand has also slowed as more tenants become homeowners. According to Zoopla, the rate of rental growth in the UK at the end of 2024 was 3.9%, the lowest in over three years. However, Rightmove data shows rental inquiries are still high, keeping rents and growth up.
In the UK’s buy-to-let hotspots, demand remains strong but tenants’ ability to pay higher rents is limited. Zoopla data shows rental growth in London’s lower-value areas ranged between 3% and 6% at the end of 2024. Outside London, rents are rising fastest in Rochdale at 11.9% annually, followed by Belfast at 11.5%. Other notable areas include Blackburn, Birkenhead, Burnley, and Newcastle.
Rents are not expected to drop in 2025 as supply remains tight. Rightmove predicts average newly advertised rents will rise by 3% outside of London and in London by the end of 2025.
