Rent growth in the private rented sector is slowing, but landlords warn that the market remains under strain, according to the National Residential Landlords Association (NRLA).

The Office for National Statistics (ONS) reports that in the year to July 2025 the average private rent rose by 5.9% across the UK, down from 8.6% in the year to July 2024.

The moderation comes amid tentative signs of improving supply. Both Zoopla and Rightmove have noted a slight increase in rental listings, suggesting that availability in the sector is beginning to edge up.

However, the National Residential Landlords Association (NRLA) has cautioned that any recovery is fragile. Research from consultancy Pegasus Insight found that 71% of landlords still report strong tenant demand, underlining the scale of imbalance in the market.

Landlord sentiment remains subdued, with confidence in the UK economy hitting just 2% ahead of the Autumn Budget. This marks the joint lowest level ever recorded by Pegasus Insight.

Budget demand

The NRLA argues that the Government must use the Budget to support long-term investment in new, good-quality rental housing. It also called for close engagement with the sector on the rollout of the Renters’ Rights Bill, stressing the need for a clear and realistic timeframe to ensure a smooth rollout of the new tenancy system.

NRLA chief executive Ben Beadle said: “Whilst a slowdown in rent increases will be of some relief to tenants, the rental market remains in a fragile state.

“Tenants across the country continue to face the reality of there not being enough homes to meet demand. Meanwhile, the sector is craving certainty about how the Government plans to implement the biggest overhaul of the market for almost 40 years.

“Now is the moment for ministers to get behind a clear, credible plan that eases pressure on renters, supports investment in new homes to rent, and ensures the smooth implementation of the Renters’ Rights Bill.”