Rics reports steep fall in new rental listings

Britain's monthly survey shows a sharp drop in new rental listings, signaling a potential rise in rents as demand remains steady.

Rics flags steepest fall in new rental properties since Covid

Britain's rental market saw the fastest fall in new listings since the first Covid lockdown, the July 2025 Rics Residential Market Survey shows. Demand from tenants remains steady, but landlords are slow to bring new properties to market. With fewer fresh stocks, analysts expect rents to rise over the next three months. Hamptons data also showed a 0.2% year on year drop in the average rent on newly let properties in July, helped by lower mortgage rates.

The report also notes softer demand for homebuyer inquiries in July, signaling a softer market after a busy early summer. Knight Frank argues the forthcoming renters rights bill is prompting landlords to sell, which could shrink supply further. Bank of England rate cuts have reduced borrowing costs to about 4%, but policy splits and the chancellor’s autumn budget keep expectations fluid and leave the market vulnerable to sudden moves.

Supply constraints are the core story. If landlords pull back to avoid tighter possession rules, the stock of available rentals shrinks further, feeding a cycle where higher rents chase too few homes. The trend could endure even if mortgage rates wobble, because landlords are weighing policy risk as well as prices.

Policy and politics are the tail that could wag the market. The renters rights bill, along with an uncertain autumn budget, creates incentives to sell or hold off, leaving renters with fewer options. In that tension, the market looks less like a simple balance of supply and demand and more like a political weather vane that moves with policy signals.

Highlights

The market will test policy and patience in the months ahead.