Rental cost pressures easing says new research but widespread challenges remain

According to the latest Voice of the Tenant survey, funded by the TDS Charitable Foundation, there are signs that affordability pressures are easing modestly.

Rental price inflation has slowed, the proportion of tenants in rent arrears has declined for the third consecutive year, and slightly fewer tenants are cutting back on essentials to cover their housing costs.

However, private rents have increased significantly over the last two years, with tenants paying over £100 more per month on average than in March 2023.

Nearly 60% of tenants saw rent increases in the past year, and 32% struggled to afford the rent. This is a slight decrease compared with February 2024 (35%), which could be because wage growth has outpaced inflation over the past few months.

Whilst a significant proportion of tenants (47%) said they were cutting back on household essentials to pay their rent, this has fallen from 55% who said the same in March 2024.

Regional differences

There are regional differences in both the cost of rent and the rate at which it is increasing.

Rental price inflation slowed to 5% on average in the year to March 2025, which is lower than previous years.  The survey suggests that rental price inflation is lowest in rural areas (less than 1%) and, perhaps surprisingly, in cities (2.6%).  

In Greater London, private rents are highest, but dropped in the past year. In contrast, the North East saw significant rental price inflation of 22% from March 2024 to March 2025. These findings are supported by data from other sources.

Vulnerable groups are more likely to be experiencing hardship

In line with previous waves of the survey, this year’s survey shows that certain groups of tenants are more likely to be making trade-offs between rent and other essential expenses. This includes low-income households, tenants from an ethnic minority background, and those with children.

Significant findings include:

• Two in five single parents and over a quarter of tenants receiving benefits are behind on their rent

• A higher proportion of single parents are cutting spending on household essentials to pay the rent (at 55%, compared to all tenants at 47%)

• Tenants with children were significantly more likely to have experienced a rent increase in the last 12 months (65%) than all tenants (57%)

For most groups, lower proportions reported that they were finding it difficult to pay their rent in 2025. However for those in receipt of benefits, the number of tenants struggling to afford rent has remained relatively stable (at 62% in 2023 and 2024 and 61% in 2025).

This indicates that temporarily unfreezing LHA rates in 2024 did not gone far enough to alleviate financial pressures for this group. 

A greater number of tenants are aspiring to homeownership

Over three quarters of tenants (76%) said that they would like to buy their own home, a significant increase from 69% in both March 2023 and March 2024.

There was also a decline in the number of respondents who believe they will rent for the rest of their lives, from 46% in March 2023 and March 2024 to 38%. This could be due to modest improvements in housing affordability.

Tenants living in small towns and particularly in rural areas are significantly more likely to see themselves as lifelong renters.

About the survey

The Voice of the Tenant Survey is a regular national survey funded by the TDS Charitable Foundation. It explores people’s experiences of living in the private rented sector in England and tracks how trends are changing over time. Focusing on issues related to affordability, tenure security and property conditions, this representative survey commenced in 2022 and is repeated annually with a new sample of over 2000 tenants. Each wave includes a key topical issue; the most recent wave (conducted in March 2025) includes questions on energy efficiency.

The full results of the survey can be accessed here.