Rent Records & Landlord Pressures: Navigating the Rental Market Amid New Rights and Tax Challenges
Rents at All-Time Highs
The UK rental market is hotter than ever. In August 2025, advertised rents hit a record £1,577 per month, with the North West leading the charge at a staggering 9.7% annual increase. London rents rose more modestly, up by 2%, but still added to affordability pressures for tenants across the capital. For landlords and tenants alike, these milestones underscore how quickly the rental landscape is changing,and why it has never been more important to stay on top of new rules and market dynamics.
Why Rents Are Rising
The rental market continues to be defined by a shortage of supply. Despite an 8% increase in the number of available properties compared with last year, supply remains 27% lower than before the pandemic. That persistent imbalance is pushing costs higher and leaving many renters facing increased competition for available homes.
Regulatory and Tax Pressures Ahead
While demand surges, landlords are navigating an increasingly complex regulatory and tax environment. The Renters’ Rights Bill, expected to pass later this year, will introduce sweeping reforms: ending no-fault evictions, restricting rent increases, and preventing bidding wars. Alongside this, the government is considering proposals to charge National Insurance on rental income in the upcoming November 26th Autumn Budget. These measures aim to protect tenants and increase fairness, but they also add new layers of financial pressure on landlords.
Landlords Feeling the Squeeze
Unsurprisingly, many landlords are weighing their options. Surveys suggest two-thirds feel unsupported by government policy, and around one in three is considering exiting the market altogether. For tenants, this raises concerns about further supply shortages, but the reforms may also provide stronger protections and greater predictability once implemented.
Navigating the New Rental Landscape
For landlords, this period demands careful planning. Understanding potential tax liabilities, preparing for legislative change, and ensuring properties remain compliant are all essential steps. For tenants, awareness of rights and protections under the upcoming reforms will be key to navigating a tighter market.
At Altura Mortgage Finance, we work with landlords and investors to adapt to these shifts. From exploring remortgaging opportunities to helping structure portfolios effectively, we ensure you are equipped to make the right decisions in a changing market. If you are a landlord or an investor looking to stay ahead, get in touch today, or explore our insights section for the latest updates and guidance.
