Nock Deighton Lettings Market Update | Summer 2025

The UK rental market has experienced a notable shift in 2025, following several years of post-pandemic rent inflation. By late 2024, tenant affordability reached its limit, slowing the pace of rental growth across many regions. However, regional figures have demonstrated an increase of 4.9% in rents over the last 12 months.

Demand remains strong - particularly for well-presented, competitively priced one- and two-bedroom homes - but regulatory and financial pressures continue to influence landlord decision-making. Some have chosen to exit the market, while others are adapting by diversifying their portfolios or targeting different tenant demographics.

Encouragingly, we’re also seeing the rise of a new generation of professional, long-term investors, many focused on yield and capital growth in key regional areas. With a current average yield of 6.7% across the West Midlands, property investment continues to offer strong income potential for landlords seeking reliable returns, particularly when supported by professional management and strategic portfolio planning.

Pricing accuracy is becoming increasingly important. Properties launched at the right level continue to let quickly, but those priced optimistically are experiencing longer void periods. A more measured level of demand is helping to stabilise the market and move it toward a more sustainable balance.

Affordability remains a key concern, but property condition is also playing a critical role in securing successful lets. Today’s renters expect higher standards, and well-maintained homes in good decorative order are attracting stronger interest and more reliable tenants. As choice increases, properties in poor condition are more likely to be overlooked - regardless of price. Landlords who invest in presentation are seeing shorter voids and better long-term returns.

Although tenant demand remains high, recent financial shifts have made limited or adverse credit histories more common. In response, agents are placing greater emphasis on comprehensive referencing and risk assessment. Where appropriate, suitable guarantors are requested to provide added assurance, giving landlords greater confidence in securing sustainable tenancies.

At Nock Deighton, our focus is on helping landlords navigate this evolving market with clarity and confidence - ensuring your properties remain compliant, competitively positioned, and professionally managed for long-term success.

If you would like to discuss your property plans or concerns – call me direct on 07967 209011 or email: [email protected]