Brighton recorded the highest rental price growth in the UK in 2025, with average rents rising by +15%, according to new data from Lomond’s Quarterly Insights Report for Winter 2025/26.
The South Coast city, located about an hour south of London by train, continues to attract renters seeking a balance between urban living and a seaside setting. Demand has been reinforced by hybrid working patterns, which remain a long-term feature of the labour market. High commuter volumes have sustained pressure on the local rental stock, particularly for well-presented family homes.
Lomond, a network of lettings and sales agents operating across the UK, reported that the national rental market ended the year with moderate growth despite affordability constraints and easing demand in some regions. The average UK rent increased to £1,602 per calendar month, up +4.9% year-on-year.
Across the South Coast, rents rose by an average of +10.5% to £1,774pcm, making it the strongest-performing region nationally. Alongside Brighton, Southampton, Portsmouth and Worthing all experienced demand exceeding supply, especially for two- and three-bedroom homes in good condition. This imbalance pushed rents higher at double-digit rates in several local markets.
Key regional trends included:
Brighton: +15% annual rent growth, the highest increase in the UK.
South Coast overall: +10.5% growth, with average rents reaching £1,774pcm.
London: +1.5% rise, keeping rents close to double the national average.
London’s average rent climbed to £2,395pcm in 2025, remaining 49% above the UK average. The capital’s rental market showed relative stability following the Renters’ Rights Act and recent Budget measures. Both inner-city and suburban areas maintained consistent activity levels, reflecting continued engagement from landlords and tenants despite regulatory and financial pressures.
Elsewhere, the Midlands and the North West posted steady increases. In the Midlands, average rents rose by +5% to £1,168pcm. The North West recorded +4% annual growth, taking rents to £1,243pcm, with furnished city-centre properties attracting the strongest tenant interest. Tenant priorities increasingly focused on energy efficiency, running costs and overall property condition as household budgets remained under strain.
Scotland diverged from the wider trend. Average rents slipped by -1% to £1,348, yet new landlord instructions increased by +38%. Lomond said this combination pointed to ongoing demand for move-in-ready homes and growing confidence among landlords entering or re-entering the market.
Buy-to-let mortgage activity stabilised during 2025 after falling sharply between 2023 and 2024. These loans accounted for around 8–9% of all new mortgages, suggesting landlords remain active but are responding cautiously to economic uncertainty and policy changes.
“The UK’s rental sector showed real resilience in the final quarter of 2025,” said Ed Phillips, group chief executive. “With the market framework now in place, the challenge shifts from anticipation to execution in both lettings and sales.”
“While regional trends vary, demand remains strong, and landlords continue to invest strategically,” he added. “With buy-to-let lending stabilising and rents rising at a manageable pace, the market enters 2026 on solid footing.”
