Rental market pressures easing as landlords invest in new homes

Pressures on the rental market are showing signs of easing as new research shows an increase in the number of landlords purchasing new properties.

The data comes from a representative survey of over 2,000 private landlords in England carried out by the TDS Charitable Foundation.

Around a quarter (23 per cent) of private landlords said they have increased the number of properties they rent out over the last year, up from one in five (19 per cent) who said the same last year.

In contrast, the proportion saying they sold property has remained flat at 14 per cent, compared to 13 per cent last year.

Landlords who bought properties this year purchased an average of 2.5 each, up from 2.2 last year. This is also higher than the average of 2.3 properties sold by those selling during the same period.

Financial pressures easing for tenants but struggles remain

The rise in rental supply has coincided with a slight easing of financial pressures faced by tenants. Whilst 56 per cent of landlords said they had increased rents over the past 12 months; this was down from 61 per cent the previous year.

This is reflected in the Foundation’s recent representative survey of private sector tenants, which has found a slight fall in the proportion of tenants saying they were struggling to afford their rent, which is now at 32 per cent, down from 35 per cent last year.

Of note, among full-time students, the proportion saying they struggled to afford their rent has fallen from 45 per cent last year to 32 per cent now.

Data from the Office for National Statistics has shown that rent increases in the sector are also slowing. The latest figures show they increased by an average of 6.7 per cent across the UK in the year to June 2025, down from a recent peak of 9.1 per cent in the year to March 2024.

Steve Harriott, Chief Executive at TDS Group and a Trustee at the Charitable Foundation said:

“Whilst cost pressures in the sector might be easing, many tenants are continuing to struggle to afford their rents.

“Measures in the Renters’ Rights Bill to help tenants challenge unreasonable rent increases will count for nothing unless they are equipped with the information about rents and provided with the detailed information that they need to exercise these rights effectively.

“Alongside this, it’s clear that many low-income tenants are continuing to struggle to cover their rents due to the ongoing freeze on housing benefit rates.”

About the survey

The TDS Charitable Foundation’s Voice of the Landlord Survey is a regular national survey of landlords’ characteristics and experiences of letting property in the English private rented sector. Complementing the Foundation’s Voice of the Tenant Survey, over 2,000 landlords were asked various questions related to affordability, changes to their portfolio, and property conditions. The survey commenced in 2024 and will be repeated annually to track changes and trends over time. This report outlines the findings from the second wave, carried out in April 2025.

The full results of the survey are available here.