As we enter the final quarter of 2025, landlords are navigating a market shaped by seasonal shifts, evolving tenant priorities, and upcoming legislation. With insights from Foxtons, Rightmove, and leading buy-to-let lender, The Mortgage Works, here’s what you need to know to stay ahead.
Rental stock and applicant levels
Rental demand softened in August, with Foxtons reporting an 11% drop in applicant levels compared to July — a typical seasonal slowdown as summer ends and students return to university. However, stock levels remain strong, with August listings exceeding the same period last year, giving tenants more choice and increasing competition among landlords. Foxtons reports that 63% of renters are spending exactly their budget, with 30% under budget and just 7% exceeding it.
With more stock available, tenants are prioritising value and quality, making well-presented properties more competitive. Average rents dipped 5% from July’s seasonal peak, settling at £576 per week, but remain 3% higher year-to-date compared to 2024. Regionally, North London saw an 8.5% year-on-year increase in demand, while East London experienced a 20.1% decline. Despite mixed demand, rents rose across most areas, with West London up 5% year-on-year.
Applicant demand eased by 32% month-on-month in September as the annual summer season trend played out as expected. Year-to-date, applicant demand continues to track 7% lower than the same point in 2024, but overall remains stable as it’s supported by a strong underlying need for rental accommodation in London.
Gareth Atkins, Managing Director of Lettings at Foxtons, explained: "September saw a seasonal dip in applicant demand as summer holidays ended and schools and universities returned. However, rental values remained strong, with average rents reaching a four-year high. Looking ahead, the Renters’ Rights Act is expected to gain Royal Assent in October, with implementation likely in the first half of 2026. These reforms will bring significant changes to the rental landscape, reshaping landlord-tenant relationships and clearly highlighting the value of working with a professional agent to achieve the best return on your rental investment."
Rightmove’s latest lettings report adds further optimism for landlords. Rents outside London have reached record highs, reflecting strong demand across the UK. Tenant competition remains intense, with agents reporting over 20 enquiries per property on average, and void periods remain low, with many homes let within days of listing. These trends suggest that landlords with well-presented, competitively priced properties are continuing to see strong returns — especially in high-demand areas.
UK Finance Q2 2025 Snapshot
Out yesterday from UK Finance, they’ve reported that buy-to-let lending remained steady in Q2, with 49,590 new loans worth £8.8bn. Average rental yields climbed to 7.26%, up from 6.9% last year, while interest rates eased slightly to 5.0%, supporting stronger affordability. Interest cover ratios also improved to 210%, reflecting healthier margins for landlords.
Lender Insight: What the Experts Are Saying
To help landlords understand how rental trends are influencing mortgage options, we spoke to leading buy-to-let lender, The Mortgage Works.
Keir Fraser, Lead Product Manager, explained about their increased product range: “Rental and tenant trends highlight growing take-up of HMOs, which is being facilitated by landlords seeking higher rental yields. We’ve supported landlords with HMOs for some time but have recently broadened our range to offer more choice for HMO landlords.
Daniel Clinton, Head of Buy to Let, shared that: “Professionalism continues to increase in buy to let with growing numbers of portfolio landlords. It’s important for mortgage lenders to serve the changing needs of landlords, as such, we’ve recently enhanced our service to Alexander Hall to better support landlords with complex portfolios and large loans. The Alexander Hall team now have direct access to our underwriting teams, ready to support - a partnership built to facilitate quick discussion and decision.”
We work closely with lenders to help landlords access competitive products that reflect current market conditions. Whether you're remortgaging or expanding your portfolio, our whole-of-market mortgage advisers can help you navigate the latest criteria and lending strategies.
Legislation
The Renters’ Rights Bill is expected to be implemented in Q1 2026. Foxtons advises landlords to ensure properties meet high standards and to work with professional agents to stay compliant. We can also support landlords with mortgage solutions that align with upcoming regulatory changes.
Need Advice? Speak to Our Experts
If you’re reviewing your portfolio or planning your next investment, speak to our expert advisers today. We’ll help you make informed decisions with the latest market and lender insight.
Call us today on 08000 38 37 36 or click here to arrange your free appointment with one of our expert advisers.
Insight taken from;
- Foxtons London Lettings Market: What Landlords Need To Know Now
- Foxtons Lettings Market Report August 2025
- Foxtons Lettings Market Report September 2025
- The Mortgage Works
- Rightmove Lettings in focus 2025
- UK Finance
This is for information only. Products and rates vary depending on your circumstances, lender criteria and products available at the time.
