So how did 2025 round up in the end, and what patterns can we now analyse as we enter 2026?
Throughout 2025, average enquiry levels declined from the highs seen during the pandemic and the immediate aftermath of restricted rental supply. Marketed properties received an average of 10 enquiries in 2025, compared to 14 per property in 2024. However, this figure remains notably higher than pre-pandemic levels, where the average sat at around 6 enquiries per property in 2019.
This clearly reflects a market that experienced an abnormal and highly reactive shift during the pandemic, resulting in prolonged instability. The gradual return towards steadier enquiry levels suggests the market is now rebalancing. This stabilisation is creating a more predictable environment, allowing investment strategies to reopen with greater confidence.
Supply increased by an overall 9% in 2025, further indicating a market beginning to breathe after the pandemic highs. Tenants have regained the ability to choose, and within the current economic climate, cost has become a critical factor. If rent levels are perceived as too high, tenants will seek more affordable alternatives, whereas competitively priced properties continue to benefit from longer tenancies and improved retention.
Demand dynamics have had a knock-on effect on void periods, which in turn has influenced rental pricing. Now more than ever, rental values are being driven by individual landlord circumstances. In London, we have observed properties of similar calibre varying by as much as £500–£800 per month. Given the wider financial climate, this divergence is understandable.
Landlords facing higher mortgage rates and tighter margins are less able to absorb void periods. As a result, many have positioned their properties towards the lower end of the market, undercutting competitors to secure faster turnarounds and minimise voids. Conversely, landlords with lower or minimal mortgage exposure - often those considering alternative exit options such as selling - are better placed to wait for the right price. This inevitably limits the tenant pool and means also waiting for the right tenant; as despite how much someone is willing to pay, if they don’t meet the criteria, they could cost more in evictions and complications down the line, especially post RRA. It was often found that those positioning themselves in the middle were able to strike the strongest balance between turnaround speed, returns, and tenant quality.
As a result of these dynamics, rental prices fell by 1.1% outside of London and 0.7% within London in Q4 compared to Q3 (2025). Despite this seasonal softening, rents increased year on year by 2.2% outside of London and 0.8% inside London. This reflects a normalised market cycle, where demand typically cools through the winter months while supply remains available, placing short-term downward pressure on pricing. Landlords should take reassurance in operating within what is now demonstrably a more predictable market.
We also saw an increase of 13% additional buy-to-let mortgages taken out in 2025 compared to the previous year. This suggests that while some investors are preparing to exit, others are actively repositioning to take advantage of changing conditions. This shift has likely been supported by falling mortgage rates, with Rightmove estimating that two-year BTL mortgage rates (with 25% deposits) fell to an average of 4.48% in 2025, down from an average pf 5.51% in 2024.
In summary, the rental market (both inside and outside of London) is stabilising. Investor confidence is gradually being restored, and strategies can once again be built on stronger, more reliable forecasts. Will landlords achieve the peak rents seen during the pandemic? No. However, longer tenancies, improved tenant stability, and more sustainable returns are now far more achievable. Rental property remains a long-term investment focused on consistency rather than short-term peaks. Landlords who adapt to current conditions and actively navigate the market will be best positioned to benefit from its long-term gains. As we move into 2026, the focus should be on smarter, more creative strategies that prioritise stability while capitalising on the opportunities a balanced market presents.
