As we move into the summer months, the UK property market continues to show signs of strength, particularly in the rental sector. According to the latest data from the Goodlord Rental Index, rents have experienced the largest month-on-month increase of 2025, with June seeing a 3.2% rise in average rental prices across England. This surge reflects the heightened demand in the rental market, a trend that is particularly relevant for property investors looking to capitalize on high-yield opportunities.
In this blog, we take a closer look at the key trends in the UK rental market and what they mean for investors. From rising rental prices to the shortening of void periods, there are several factors that continue to make UK property a lucrative investment. We also discuss how regional variations in rent changes could influence where investors should focus their efforts.
The rental market experienced a significant uptick in June 2025, with month-on-month rent increases of over 3%. This was the largest rise in rents recorded this year, taking the average rent in England from £1,226 in May to £1,265 in June – an increase of £39 a month, or £468 annually.
This sharp rise in rental prices underscores the ongoing demand for rental properties, particularly as the market enters its busiest season. With prices up 3.2% year-on-year, landlords are seeing better returns on their investments, and the trend is expected to continue for the foreseeable future.
The rent increase wasn’t uniform across all regions. Greater London, the North East, and the North West saw rises between 2% and 4%, but the South West recorded the most significant jump, with rents soaring by 14%. This is not the first time the South West has seen a major spike – it experienced the same 14% increase in June last year, indicating that the region remains a strong performer in the rental market.
While June’s month-on-month increase was substantial, the pace of year-on-year rent growth seems to be slowing. The 3.2% increase in June 2025 marks the fourth consecutive month of decreasing year-on-year rent inflation. Compared to earlier months this year, when the increases were higher (4.6% in March and 4.2% in April), the latest data shows a more moderate pattern of growth.
This slowdown in annual rent inflation could suggest that the market is stabilising, which is a positive sign for long-term investors. It may indicate that supply and demand are starting to recalibrate, with landlords and tenants adjusting to a more balanced market.
Another key trend in June 2025 was the reduction in void periods across the country. On average, void periods – the time between tenancies – were reduced from 21 days in May to 20 days in June. This reflects the growing demand for rental properties, with tenants moving quickly to secure available homes.
Interestingly, June 2024 saw an even shorter average void period of 17 days, suggesting that the market may be nearing a more sustainable level of activity. Shorter voids are a positive indicator for property investors, as they mean less time without rental income and more consistent cash flow.
Despite the overall slowdown in year-on-year rent inflation, the continued rise in rents and the shortened void periods signal that the UK rental market remains in high demand. For investors, this means stable rental yields and a growing pool of tenants eager to secure high-quality rental homes.
However, there are potential risks on the horizon, including the passing of the Renters' Rights Bill, which may impact the buy-to-let market by increasing regulations for landlords. While this could create some uncertainty, it’s important to note that the long-term outlook for UK property investment remains strong. Investors who remain adaptable and prepared for regulatory changes will continue to see success.
The UK property market continues to offer strong opportunities for investors. Despite short-term fluctuations and regulatory challenges, the ongoing demand for rental properties, coupled with rising rents, presents a compelling case for long-term investment.
Whether you're looking for steady rental income or potential capital growth, now is still a great time to invest in UK property. At Magnate Assets, we specialise in sourcing high-yield properties in growing regions, including the North East and South West, which are experiencing strong demand and promising returns.
For more information on the best investment opportunities in the UK property market, feel free to reach out to our team.
The UK rental market is showing signs of continued strength in 2025, with rental prices rising and void periods shortening. While year-on-year rental inflation is starting to moderate, the overall demand for rental properties is still robust, making it a great time for investors to enter or expand their portfolios.
Stay tuned for more updates, and don’t hesitate to contact us if you’re ready to explore your next investment opportunity.