September Property Market Update: Opportunities for Landlords

Rents Continue to Climb

Private rents across the UK rose by 5.7% in the 12 months to September 2025, with the average monthly rent now standing at £1,348. London remains the most expensive rental market at £2,253 per month, while the North East is the most affordable at £745.

Yet it is the North East that is seeing the sharpest rent growth, with annual inflation hitting 9.2%, up from 8.9% in July. This is a clear signal of growing tenant demand in the region. For landlords, it highlights the potential for higher rental yields in more affordable markets outside of London and the South.

House Prices Climb Higher

House prices are also showing steady increases, though growth varies sharply by region. In July 2025, the average house price in England reached £292,000, up 2.7% compared with the year before. The North East again led the way, recording the strongest growth at 7.9%.

London, on the other hand, saw house prices rise by just 0.7% over the same period, the weakest performance of any English region. Northern Ireland also continues to stand out, with prices rising by 7.4% over the year, while Scotland and northern England delivered more modest but consistent growth.

Supply and Demand Shifts

Demand in the North is robust, up 11% compared with last year, and sales agreed have risen by 8%. At the same time, supply is tightening, with fewer homes on the market, down 1% in Scotland and 4% in northern England. This combination of stronger demand and lower supply is pushing prices and rents higher, making the North increasingly attractive for property investors.

In the South, however, the picture looks very different. Supply is increasing sharply, up 18% in London and 12% across the South East and South West. With more homes available, competition among buyers has eased, leaving annual price growth at just 0.4% on average.

What This Means for Landlords

For landlords, September’s market trends underline the benefits of looking north for stronger returns. In regions such as the North East, the combination of rising rents and growing house prices offers both immediate rental income and long-term capital appreciation. 

Meanwhile, London and the wider South may appeal to landlords looking for entry opportunities, as slower price growth and greater stock levels give more room for negotiation. However, yields are likely to remain lower than in northern markets.