September traditionally brings a rental bounce as the market picks up again after the distraction of summer, but what does the latest data indicate for this year for agents and landlords?
Lower demand and increased supply
Rental demand is falling as lower interest and mortgage rates enable more renters to transition into first-time buyers. Zoopla has reported a 24% decline in demand in September compared to last year. Meanwhile, it says that supply is increasing, with the number of new properties for rent up by nearly a fifth and the average letting agent having 19 homes on their books. This lowered competition for properties is beginning to slow rental price growth.
Slowing rental growth
According to the ONS, rental growth has been slowing for the past eight months. Its latest figures show that average UK monthly rents increased by 5.7% in the twelve months to August 2025, but this was down from 5.9% for the 12 months to July 2025.
Huge disparities remain, however, with average rent more than six times higher in the most expensive local area than in the least expensive, according to the ONS. Meanwhile, figures published in July by Rightmove suggest that nearly a quarter (24%) of rental homes are being reduced in price before they are let – the highest number since 2017 – which shows that accurate pricing is essential for a successful let.
An alternative summary
The latest figures from the RICS Residential Survey for August 2025 paint a different story. Its figures suggest that there are fewer properties on the market to rent, with landlord instructions down according to a net balance of -37% of respondents. This is the weakest sentiment since 2020. As a result, more than a quarter (27%) of its survey participants expect rental prices to continue to rise over the coming three months, with respondents predicting 3% growth in rents nationally.
September outlook
The indexes show mixed results, and it will take a while before we see a clearer picture of the rental situation in September. However, they indicate that rather than the traditional September bounce, we are more likely to see a softer normalisation of rents as we move into autumn and a changing market.
Affordability ceilings will limit price growth even if the more balanced supply and demand doesn’t continue to weaken prices. Nervousness around property tax changes in the budget could put off buyers, which may mean a small proportion who had intended to buy may stay on the rental path for a little while longer instead.
For agents and landlords an understanding of the local market, correct pricing, effective property and tenant matching and management, as well as comprehensive tenant screening will remain key factors in a successful let, particularly as the Renters’ Rights Bill edges closer.