Landlords are looking at services like Rent Guarantee Insurance to de-risk their portfolios as the threat of new laws destabilises the industry.
That’s the experience of Will Eastman,head of legal at HomeLet and Let Alliance. In a commentary on the latest lettings market index he says: “Rental prices continue to edge upwards, and market uncertainty appears to be playing a role.
“Legislative reform, rising costs, and shifting risk factors are prompting some landlords to reconsider their long-term plans, which could impact the supply of rental homes.
“The proposed Renters’ Rights Bill is one of several changes that, while well-intentioned, may inadvertently reduce confidence among some landlords. The Renters’ Rights Bill could have knock-on effects that are detrimental for all parties.
“Although some landlords may choose to leave the sector, many are instead exploring alternative ways to manage risk. Rent Guarantee Insurance, for example, is becoming more popular as a way for landlords to protect their rental income as they look for stability in an evolving market.”
Shrinking availability and sustained tenant demand has pushed up rents for the seventh consecutive month.
The latest HomeLet Rental Index shows that average UK rents increased to £1,313 in July 2025, up 0.4% month-on-month.
The index says that this ongoing trend reflects the pressure building within the private rental sector, where demand continues to outpace supply.
Rents outside of London rose in line with the national average, reaching £1,132, an increase of 0.4% month-on-month and 1.7% annually. While overall growth remains steady, several regions posted more significant changes.
Key Data from the July 2025 HomeLet Rental Index:
• Average UK rent: £1,313 (+0.4% MoM, +0.4% YoY)
• UK excluding London: £1,132 (+0.4% MoM, +1.7% YoY)
• Largest monthly increases:
o Scotland: +2.1%
o Wales: +1.6%
o North East: +1.2%
• Annual changes:
o Yorkshire & Humberside: +4.5% growth
o Greater London: -0.9% YoY
o North West and West Midlands: + 2.3% YoY
“Despite rent decreases in a few regions, the overall trend across the UK remains upward. Pressure on supply, potentially influenced by landlords reassessing their portfolios, continues to shape rental market dynamics in 2025” says HomeLet.
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