Rising rental costs and shortages threaten UK affordability as landlord exit accelerates

Escalating rules and red tape for landlords are driving a significant decline in available rental properties across the UK, pushing up rents and challenging affordability for tenants amid a widening supply crisis.

An industry voice representing letting agents is warning that escalating rules and red tape for landlords are contributing to rising rents and a worsening shortage of available homes in the private rental sector. According to a recent Propertymark report, these regulatory and financial pressures on landlords are fueling an undersupply of rental properties, exacerbating affordability challenges for tenants across much of the UK.

Megan Eighteen, President of the Association of Residential Letting Agents (ARLA Propertymark), explained that although rental price increases have slowed in many areas and interest rates have begun to ease, these factors alone are insufficient to bring rents down to affordable levels in the long term. She emphasised that a sustained stream of professional landlords should be encouraged to invest, rather than be driven away by measures such as the removal of mortgage interest tax relief and an increase in complex licensing schemes. “Private rented homes have always played a crucial role in housing the nation,” she stated, highlighting the need to balance regulatory aims with incentives that support landlord engagement.

The Propertymark rental price and salary tracker revealed significant regional disparities across the UK. The North East remains the most affordable rental market, requiring an average annual salary of £25,950 to cover monthly rents averaging £865. In contrast, London continues to be the most expensive area, with average rents reaching £2,389 per month and a required salary of over £71,000. Interestingly, London saw a modest decrease in the salary needed to rent, down 1.9% year-on-year, whereas Yorkshire and Humberside experienced the largest rise in rental affordability pressure, with the required salary increasing by 8.1%, from £27,990 in 2024 to £30,270 in 2025.

Industry-wide data underscores that tenant demand still surpasses the supply of rental properties, driving ongoing upward pressure on rents. Propertymark’s June 2025 Housing Insight Report highlights that affordability remains a critical barrier, with average rents in England at £1,399, and even lower averages in Scotland and Wales. This affordability crisis is compounded by an acute shortage of homes available both to buy and to rent. A report by Propertymark published late last year illuminated that the average UK house price stood at £290,000, nearly eight times the average annual earnings, while rents surged by 9% over the previous year. Yet despite stretched budgets, rental arrears have shown a decline, indicating tenants are prioritising their rent payments amidst financial pressures.

The exit of landlords from the market appears to be a growing trend, with 80% of estate and letting agents surveyed by Propertymark noting an increase in landlords leaving the sector over the last three years. This trend further tightens the rental supply and adds momentum to rent increases. At the same time, tenants are experiencing increased difficulty in securing accommodation, as landlords adopt more selective tenant criteria. These dynamics risk exacerbating affordability challenges for low- and moderate-income households.

While the UK’s rental crisis has some parallels internationally, data from Australia paints an even grimmer picture of rental affordability. According to PropTrack’s 2024 Rental Affordability Report, households with median incomes can now only afford 39% of advertised rentals. Rental prices have surged by nearly 40% since the pandemic, outpacing wage growth and deepening affordability woes. Experts stress that addressing rental affordability will require a concentrated effort to increase housing supply, a lesson equally applicable in the UK context.

In sum, the evidence from Propertymark and other sources strongly suggests that a sustained shortage of rental properties is driving rental price increases and affordability challenges across the UK. While recent softening in rent rises offers some relief, it is unlikely to be enough to reverse the broader trends unless the sector can attract more landlords back into the market and the supply of homes increases significantly. Policymakers face the complex task of balancing landlord regulation with incentives to maintain a vibrant private rented sector capable of meeting the growing demand.

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Source: Noah Wire Services

Noah Fact Check Pro

The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.

Freshness check

Score:
8

Notes:
The narrative was published on 29th September 2025, making it current. The Propertymark report referenced is recent, with data from 2025. However, similar themes have been reported in the past, such as the 2015 ‘Housing 2025’ report predicting rising rents due to increased demand and regulatory changes. ([propertymark.co.uk](https://www.propertymark.co.uk/resource/housing-2025.html?utm_source=openai)) Additionally, a 2024 report highlighted the impact of tax policies on landlord confidence and rental supply. ([propertymark.co.uk](https://www.propertymark.co.uk/resource/landlord-confidence-is-faltering-as-one-in-four-plan-to-quit.html?utm_source=openai)) These earlier reports suggest that while the current narrative is timely, the underlying issues have been ongoing. The presence of similar content across various platforms indicates that the topic is widely discussed, but the specific data and quotes in this report appear to be original.

Quotes check

Score:
9

Notes:
The direct quotes from Megan Eighteen, President of ARLA Propertymark, are unique to this report. A search for her statements on similar topics reveals no exact matches, indicating originality. However, her concerns about regulatory impacts on landlords have been echoed in previous reports, such as the 2024 study highlighting tax policies affecting landlord confidence. ([propertymark.co.uk](https://www.propertymark.co.uk/resource/landlord-confidence-is-faltering-as-one-in-four-plan-to-quit.html?utm_source=openai)) This suggests that while the specific wording is original, the sentiments have been previously expressed.

Source reliability

Score:
7

Notes:
The narrative originates from Property118, a platform that aggregates news and opinions related to property and landlord issues. While it provides valuable insights, its content is often sourced from various contributors and may not always undergo rigorous editorial oversight. The report references data from Propertymark, a reputable industry body, which adds credibility. However, the lack of direct attribution to Propertymark in the narrative raises questions about the verification of the data presented.

Plausability check

Score:
8

Notes:
The claims about rising rents and the impact of regulatory changes on landlords are consistent with recent trends in the UK rental market. For instance, a 2025 report indicated that 61% of landlords planned to raise rents, citing increased costs and policy changes as factors. ([propertywire.com](https://www.propertywire.com/news/slowdown-in-rent-increases-on-the-horizon/?utm_source=openai)) Additionally, concerns about the Renters’ Rights Bill and its potential effects on the rental market have been widely discussed. ([landlordtoday.co.uk](https://www.landlordtoday.co.uk/breaking-news/2025/03/landlords-facing-increased-costs-and-complexity-in-rental-market-warning/?utm_source=openai)) The narrative’s focus on these issues aligns with current market dynamics, suggesting a high level of plausibility.

Overall assessment

Verdict (FAIL, OPEN, PASS): PASS

Confidence (LOW, MEDIUM, HIGH): HIGH

Summary:
The narrative presents current data and quotes, indicating freshness and originality. While similar themes have been reported in the past, the specific content appears unique. The source, Property118, provides valuable insights but may lack rigorous editorial oversight. The claims made are consistent with recent trends in the UK rental market, enhancing the narrative’s credibility.