PRS supply surges but affordability gap widens

Private rented sector (PRS) listings have climbed across every UK region for the first time in years, according to TwentyEA’s.

It’s latest Property & Homeowner Report found that supply is up 6.9% compared to 2024, with more than one million homes entering the rental market so far this year.

Despite the rental home supply uptick, the number of available properties was up by 64,750 but remains 159,000 lower than in 2019.

Lettings agreed are at their highest level in six years, rising by 5.6% compared with 2024 – though the report suggests supply growth is now outpacing demand in many areas.

Solid rental supply growth

Executive director, Katy Billany, said: “Looking at Q3 2025 lettings agreed compared to Q3 2024, we saw solid growth across the board, with only Northern Ireland experiencing a decline of 2.1%.

“Outer London saw the biggest growth in lettings agreed of 13.5%, followed by Wales at 13.4%, compared to just 0.6% growth in Inner London as the capital’s rentals become increasingly unaffordable.”

She added: “Leeds saw a staggering rise of 24.4% in lettings agreed in Q3 2025 compared to Q3 2024, while Southampton experienced a drop of 0.4%.”

Average rent falls

The average let agreed price in 2025 was £1,477pcm, which has fallen by 1% in the last year (£15pcm).

The availability of homes priced below £800 a month has fallen by 2.5% year-on-year, while the £800 to £1,500 segment has expanded by 11%.

In contrast, higher-priced stock is growing faster than tenant demand, tilting the balance further away from affordable rentals.

Outer London stands out with the biggest increase in rental supply, up 17.8% year-on-year, while inner London lags far behind at just 1.4%.