According to the property listings platforms Zoopla and Rightmove, there are now signs of a slight uptick in the supply of rental housing.
However, the National Residential Landlords Association (NRLA) is warning that recovery in the rental market remains fragile, with the demand for rental housing still outstripping supply.
Data from the research consultancy Pegasus Insight has found that 71 per cent of NRLA members continue to report strong tenant demand for their properties.
The rate of rent increases in the private rented sector has fallen by around a third over the past year, according to official data, says the NRLA.
The Office for National Statistics (ONS) reports that in the year to July 2025, average private rents increased by 5.9 per cent across the UK, down from 8.6 per cent in the year to July 2024.
The slower rent increases come amid signs of a slight easing of pressures in the rental market.
With the prospects for recovery in the rental market now delicately poised, the NRLA is calling on the government to use the forthcoming budget to support long-term investment in new decent quality rented housing.
Alongside this, the organisation says the government needs to work closely with the sector to ensure a credible plan is in place to implement the Renters’ Rights Bill with as little disruption to the market as possible.
This must include a clear and realistic timeframe that allows for a smooth and seamless transition to the new tenancy system.
Ben Beadle, chief executive of the NRLA, said: “While a slowdown in rent increases will be of some relief to tenants, the rental market remains in a fragile state.
“Tenants across the country continue to face the reality of there not being enough homes to meet demand.
“Meanwhile, the sector is craving certainty about how the government plans to implement the biggest overhaul of the market for almost 40 years.
“Now is the moment for ministers to get behind a clear, credible plan that eases pressure on renters, supports investment in new homes to rent, and ensures the smooth implementation of the Renters’ Rights Bill.”
