July 2, 2025

How much are UK rents predicted to grow?

The UK rental sector keeps growing and growing. There aren’t enough homes to go around, so competition for the available properties keeps increasing – even during challenging economic times.

For landlords, that means you can expect increased rental returns and yields over the next four years. Here’s what the experts have to say…

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Average rents will go up everywhere in the UK over the next four years

Every major research and statistics agency in the UK believes that we will see significant rent increases in the next four years. Savills believes that the average UK rent will be 17.6% higher at the end of 2029 than it was at the beginning of 2025.

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JLL agrees, forecasting growth of 17.1% over that timeframe. Knight Frank believes that rental growth will be a bit higher than that at 18.8% in the next four years.

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Overall, the picture of what’s expected is clear thanks to low construction rates, a growing population and a lack of quality housing. That’s especially true in the busiest city centre markets where luxury apartments command higher rents – and make great investments.

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…but not all areas are seeing growth at the same speed

All of those sources also agree that rents in London are growing at a much slower rate than the UK as a whole. They are also growing nowhere near as quickly as rents in Northern regions. These areas are becoming extremely popular with landlords for that reason and are overtaking the capital city in attractiveness.

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Zoopla’s latest data shows that rents in London have gone up just 1.5% over the last 12 months. Average rents in the city are still the highest, but the sky-high price of investing in the capital means that yields are much lower on average than elsewhere in the country.

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Is this a good time to purchase property?

This is an ideal time to purchase if you want to maximise your monthly rental income. Not only are rents historically high, but they are also building on the Covid-19 pandemic years, when we saw double-digit growth for years in a row.

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That means there are big profits available for those who can purchase. If you do so now, you can even buy while house prices are staying relatively stable. The gap between rental growth and house price growth is widening, and that should lead to increased rental yields for investors who buy sooner rather than later.

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Zoopla’s June 2025 Rental Market Report backs this up. The property portal has recorded average rental growth of 21% over the last few years and average house price growth of 4%. That is a gap where investors can make a lot of money.

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Where are the highest rental yields in the UK?

Research from Paragon Bank shows that rental yields in the UK are currently at a 14-year high and still growing. The analysis also shows the regions where landlords can achieve the highest rental yields:

Wales – 8.43%
Yorkshire and Humberside - 7.97%
North - 7.94%
South West - 7.93%
North West - 7.85%
East Anglia - 7.60%
West Midlands - 7.52%
East Midlands - 7.49%
Scotland - 7.46%
South East - 6.57%
Greater London - 5.78%

That offers clear direction for landlords wondering where to find the highest rental yields in the UK. It also shows what yields you can aim for in those markets if you have an existing investment. If you’re not getting close to those numbers, it could be worth looking into why that is and how you can maximise your rental income.

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How to maximise rental income

Buying the right property in the right place is essential, but there are other steps you can take, including:

Furnishing the apartment
Marketing it correctly
Ensuring it is priced competitively
Dealing with maintenance issues to keep tenants in place

…and much more. However, the number one way to earn the maximum possible rental income from your property is to appoint a professional lettings and management agent who can take care of everything on your behalf.

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By doing so, you can make sure your property is performing strongly and working as hard as possible, so you can get the highest rental income. All of that without having to lift a finger yourself.

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Want to learn more about property management and lettings? Contact our team today for more information!

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