UK rental market growth continues to demonstrate resilience and stability, making it a strong area of focus for investors. Forecasts suggest steady expansion in the coming years, driven by limited supply, shifting landlord behaviour, and consistent tenant demand.
Current London rental market forecasts from Knight Frank underscore this trajectory, with prime areas expected to outperform the broader market.
Key Rental Growth Projections (2025–2029)
These figures reinforce long-term confidence in UK rental market prediction models, particularly in prime London, where tenant demand consistently outpaces housing supply.
Year-by-Year Rental Value Forecasts
|
Year |
UK |
Greater London |
Prime Central London (PCL) |
Prime Outer London (POL) |
|
2025 |
4.0% |
3.5% |
3.0% |
3.0% |
|
2026 |
3.5% |
3.0% |
4.0% |
4.0% |
|
2027 |
3.5% |
3.0% |
4.0% |
4.0% |
|
2028 |
3.0% |
3.0% |
4.0% |
4.0% |
|
2029 |
3.5% |
3.5% |
4.5% |
4.5% |
|
Cumulative 2025–2029 |
18.8% |
17.1% |
21.1% |
21.1% |
Implications for Investors
Tenant demand remains strong
Population growth, urbanisation, and restricted new housing supply continue to support UK rental values.
Attractive income and yield
UK buy-to-let investment remains appealing, with consistent rental growth supported by capital appreciation potential.
Prime London resilience
Both PCL and POL offer secure prospects due to international appeal, low inventory, and long-term tenant demand.
Bottom Line
Even as capital values face uncertainty, the UK rental market growth outlook through 2029 highlights rental property as a source of steady income and stability. For investors, the combination of dependable rental returns and targeted UK buy-to-let investment opportunities positions the sector as one of the most reliable in the real estate industry.