Rental Market Update: Growth Eases but Opportunities Remain Strong for Landlords

Rental Market Update: Growth Eases but Opportunities Remain Strong for Landlords

The rental market across the UK and here in Kent continues to evolve, with the latest figures showing signs of both stability and opportunity for landlords who stay informed.

According to Rightmove’s latest data, the average advertised rent outside London has risen by 1.5% this quarter (+£20) to a new record of £1,385 per calendar month (pcm). While that marks the third consecutive quarterly record in 2025, the annual rate of growth has slowed to 3.1%, the lowest since 2020.

In London, rents are now £2,736 pcm on average, up slightly (+0.9%) but with annual growth at just 1.6%, suggesting the capital’s market is cooling faster than other regions.

A Market Finding Its Balance

Across the country, the number of homes available to rent has increased by 9% year-on-year, offering tenants a bit more choice and easing upward pressure on rents. That said, supply still sits 23% below 2019 levels, which is a reminder that demand continues to outstrip availability, especially in sought-after areas like Maidstone, Sittingbourne and Faversham.

While new listings are up just 1% year-on-year and tenant demand has fallen 14%, the market is showing early signs of balance, which will be welcome news for landlords and tenants alike.

Headwinds for Landlords

Recent policy and tax changes are dampening some investor confidence. The stamp duty surcharge introduced in October, and speculation around a new national insurance tax for landlords in the forthcoming Autumn Budget, have made some investors cautious.

On top of this, the Renters’ Rights Bill continues to raise questions. Rightmove reports that one in three landlords is considering exiting the market, while two-thirds feel unsupported by government policy. Only 43% say they’re fully aware and prepared for the proposed changes.

At Quealy & Co, we understand how this uncertainty can feel. Legislation is evolving, but with the right advice and proactive property management, landlords in Kent can stay compliant and continue to achieve strong returns.

Affordability Remains a Challenge for Tenants

Even as average earnings have risen by 5% over the past year, renting still consumes 44% of the average salary, up from 40% five years ago. For renters hoping to buy, the average 20% first-time buyer deposit has climbed by more than £5,000 since 2020, now at £45,374.

That financial strain is keeping demand strong in the rental sector, particularly for well-maintained homes in desirable Kent locations, something many of our landlords are continuing to benefit from.

Financing and Future Planning

Buy-to-let investors are still navigating higher borrowing costs. The average new mortgage rate for landlords sits at 4.87%, down from 5.21% last year but significantly higher than pre-2022 levels. Almost a third of landlords say rising rates have paused their expansion plans, while 17% are reducing their portfolios.

However, as Rightmove’s Colleen Babcock notes, “The majority of landlords are looking to stay in the market and even grow their portfolios, which is positive for tenants.”

She adds that while uncertainty around mortgage costs and legislation isn’t ideal, well-informed investors still have strong opportunities ahead.

Quealy & Co’s View: Stay Informed, Stay Ahead

Here in Kent, we’re seeing resilient tenant demand, particularly for energy-efficient homes, pet-friendly properties, and modernised rentals near transport links. For landlords willing to adapt (whether by upgrading EPC ratings or reviewing rent strategies) the medium-term outlook remains encouraging.

Our advice?

Stay up to date. Read up on legislation like the Renters’ Rights Bill.

Review your mortgage options. Even small rate differences can make a big impact.

Seek local market insight. Kent’s rental dynamics can differ sharply from the national picture.

At Quealy & Co, we’re here to help landlords navigate the shifting landscape. If you’re a Kent landlord considering your next move, speak with our lettings experts today.

Whether you’re expanding, reviewing rents, or exploring a managed service, we’ll make sure your investment works hard for you, whatever the rental market brings next.

We can be reached on 01795 429836 or email us at hello@quealy.co.uk