
Like every month, Rentila offers you an overview of the main real estate news of interest to landlords and tenants. This month, we focus on: Average house price set to break the £300,000 barrier; House builders hit by shortages and interest rate fears; Leading BTL lenders reduce mortgage rates; Average UK rent rises 3% to almost £1,300 a month; Landlord average arrears rise above £2,500; UK has highest property taxes of any developed nation… Happy reading and… renting!
House prices slide as landlords sell up
Property values are sliding as landlords sell up low yielding properties in London and the southern counties, one index reveals.
According to Home.co.uk’s February asking price index, former rented homes are now flooding the market.
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Average house price set to break the £300,000 barrier
The average price of a house in the UK will breach the £300,000 mark this year, driven by a wave of eager buyers flooding back into the market, research reveals.
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UK house price growth steady at 3.9%
The housing market showed continued strength in February, with the annual rate of price rises holding firm at 3.9%, a slight dip from January’s 4.1%.
On a monthly basis, prices edged up by 0.4%, marking the sixth straight month of gains after adjusting for seasonal trends.
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Price gap between houses and flats reaches 30-year high
The housing market has had a strong start to 2025, with new sales agreed running at 10% higher compared to a year ago, according to Zoopla.
Annual house price growth has dropped slightly from 2% to 1.9% though, with higher mortgage rates and upcoming stamp duty increases to blame.
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UK house prices dipped slightly in February
Northern Ireland saw the highest yearly growth of 5.9% growth, with average prices at £205,784, and Scotland’s prices grew by 3.8%.
Welsh properties saw a 2.8% increase, averaging £226,811, while Yorkshire and Humberside saw the strongest English regional growth at 4.1%.
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House builders hit by shortages and interest rate fears
The housebuilding sector has proven a complex triangle with the demand for homes playing out against their affordability as prices continue to rise, with all eyes on the future of interest rates. In this respect, the Bank of England did what it could at the beginning of the month by delivering a third cut to take the benchmark rate down to 4.5%…
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UK house prices expected to rise as buyer demand slows ahead of stamp duty increases
Buyer demand in the UK housing market slipped in February, touching its weakest levels since late 2023, with expectations that this trend will continue as higher stamp duty costs come into effect next month.
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The UK housing market returns to growth, fuelled by a surge in property transactions
The UK housing market returned to growth in 2024, driven by a £22.3bn increase in spending on house purchases, according to research by Savills.
Overall, the total value of the UK housing market has expanded by 6.3% in 2024 to £379bn.
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Best cities for rental investment named – where are the rental hotspots?
The Treasury reports that there are currently 11 million private renters and 2.3 million landlords in England. As the demand for rental properties continues to drive the market, the upcoming Renters’ Rights Bill is set to further reshape the landscape.
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Super-prime London property market ‘flourishing’ despite non-dom reforms
A top luxury estate agency has said the super-prime London property market has held up better than expected in the face of the government’s non-dom reforms and could benefit from Britain’s “boring but solid” politics amid turbulence elsewhere.
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Fixed rate averages unchanged despite rise of sub- 4% deals
However, despite the cuts, average rates on two and five-year fixes remained unchanged week-on-week.
The overall average rate for two-year fixes was 5.39% this week, consistent with last week, having dropped 0.05% from a week earlier.
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Bank of England plans to ease leverage rules on UK lenders
The move is the latest indication that rulemakers are responding to calls by Sir Keir Starmer’s government to support the UK’s flagging economy by easing the burden of regulation, particularly for smaller businesses.
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Leading BTL lenders reduce mortgage rates
Two prominent buy to let lenders, Accord Mortgages and The Mortgage Works, have announced reductions to their BTL offerings.
The revamped ranges are aimed at a variety of borrowers, from those wanting short-term deals to others eyeing longer commitments.
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Rent growth slows for new tenancies – but renewal prices soar
The pace of rent rises for new tenancies has dropped, with average monthly payments climbing by just 1.8% in January compared to the previous year.
Data also shows that this is the smallest rise since October 2020 to mark 18 months of continuous easing.
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Average UK rent rises 3% to almost £1,300 a month
Tenants are paying an average £1,284 per month on rent, an increase over the last year, according to Zoopla. Data from the property site shows that 12 renters are chasing every home for rent.
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Rent arrears fuel one in five tenancy disputes
There has been a big escalation in tenancy disputes with rent arrears now accounting for a fifth of all disagreements, research reveals.
The firm behind the findings also fears that the Renters’ Rights Bill will worsen tenant-landlord relations and spark more disputes.
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The UK region where over 60% of properties are being rented – and it’s not London
Manchester has emerged as the UK’s top city for renters in 2025, with 62 per cent of households now renting their homes.
The residential rental sector has tripled in size, with over a third of UK households now renting, primarily from private landlords.
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Private rents rise 8.7% in 12 months to Jan
The latest figure is down from 9.0% in the 12 months to December 2024.
Average rents increased by 8.8% to £1,375 in England, by 8.4% to £780 in Wales and by 6.2% to £995 in Scotland, in the 12 months to January 2025.
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Where are the hotspots for investment?
A study has examined the UK cities where average house prices have increased the most in the last ten years, highlighting the areas that may provide lucrative investment opportunities.
Here are the hotspots for UK property investments.
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Should landlords consider selling their properties?
How will the Renters’ Rights Bill impact landlords on a day-to-day basis?
When will we get clarity on what’s in the bill?
Should landlords consider selling their properties?
What landlords and property investors should consider when choosing an agency?
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Landlord average arrears rise above £2,500
Landlords face growing financial risk as the average rent debt has jumped to £2,597, a 44% surge in a year, research reveals.
A deposit alternative provider, has found that with a typical cash deposit of £1,228, there’s a potential arrears bill deficit of £1,369 – the highest recorded.
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Surge in the number of property millionaires
The number of £1m-plus homes market remained resilient last year, according to property firm Savills, with 3,127 more joining the ranks of property millionaires.
In total there are now 702,580 homes valued at £1m or more across Great Britain.
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Leaseholds are being abolished in England and Wales
The UK government has unveiled a huge plan to overhaul the rules around home ownership in England and Wales. Specifically, it wants to impose a long-awaited ban on leaseholding.
Campaigns to get rid of the centuries-old leasehold system have gone on for years, with people who own homes under leasehold left to feel like second-class homeowners.
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Welsh council initiative to attract private landlords
A Welsh council has launched a programme to lease properties from PRS landlords so they can offer affordable homes to local people.
Newport City Council says that landlords are leaving the sector ‘for different reasons’ and wants them to remain.
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There is a ‘natural reticence for landlords to open their property to pets’
A small proportion of rental properties advertised as ‘pet friendly’ despite incoming changes via Renters’ Rights Bill
Zero Deposit analysed a sample of property listings online and found that just 8% of rental properties listed on the current market are pet-friendly.
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Why endless landlord bashing has created the UK’s housing crisis
We all know that the private rented sector across England, Wales and Scotland is under siege.
Landlords, the backbone of this market, are being punished for factors beyond their control, what with draconian legislation, council overreach and a political narrative that paints us as villains.
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Are the Labour Party about to cut red tape for landlords to help tenants?
News about Chancellor Rachel Reeves meeting with industry regulators to cut the cost of regulations, including environmental measures, and reduce red tape to build new housing raises important questions.
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UK has highest property taxes of any developed nation, analysis shows
The UK has the highest property taxes of any advanced economy around the world, new analysis shows as many households and businesses brace for a bills hike next week.
The country’s property tax burden – which includes council tax, business rates, and stamp duty – was 3.7% as a proportion of gross domestic product (GDP) in the 2023/24 tax year.
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