Navigating the 2025 Rental Market: Why Choosing the Right Letting Agent Matters
Ella Crisp
The UK rental market continues to face significant pressures in 2025, shaped by economic conditions, rising living costs, and upcoming legislative changes. For both landlords and tenants, staying informed and working with a knowledgeable letting agent has never been more important.
Market challenges and shifting dynamics
According to data from Reposit, rent arrears have increased by 56% since early 2023, with the average arrears now at £2,237. This figure is nearly £1,000 higher than the average tenant deposit of £1,261 - highlighting a growing gap that many landlords are struggling to bridge.
With the cost of living still affecting 66% of UK adults (ONS, March 2025), rent arrears are now linked to 1 in 5 tenancy disputes, placing additional strain on the rental sector. Meanwhile, rental prices across much of the UK continue to climb, driven by both inflation and a significant shortfall in available stock.
Impact of legislative changes
The upcoming implementation of the Renters’ Rights Bill is expected to further reshape the private rented sector. The removal of Section 21 ‘no-fault’ evictions and the introduction of stricter rules under Section 8 are already prompting many landlords to reconsider their portfolios.
As a result, the UK has seen an 18% decline in rental housing supply compared to last year - 23% down from pre-pandemic levels (TwentyEA). Yet demand shows no sign of slowing. In fact, competition among tenants is intensifying, with agents now receiving an average of 10 applications per available property. Propertymark also reports that in early 2025, their branches registered 100 new tenants on average per month, a year-on-year increase. With strong demand and fewer homes available, landlords are in a prime position to achieve higher yields and secure long-term, reliable tenants - making now a key time to stay invested rather than step away.
What this means for landlords and tenants
In this evolving landscape, landlords must balance rising demand with increased regulation and risk. For tenants, securing suitable housing has become more competitive, with affordability and rental conditions under closer scrutiny.
Working with an experienced letting agent who understands these pressures - and can provide both practical support and legal protection - can make a significant difference.
How Oakheart can help
At Oakheart, we’re committed to supporting both landlords and tenants through these ongoing changes. Our dedicated lettings team offers:
- Up-to-date guidance on the latest legislation
- Access to comprehensive Rent and Legal Protection
- A proactive approach to matching reliable tenants with well-managed properties
- Transparent communication and ongoing support throughout each tenancy
We understand the local market across Essex and Suffolk, and we’re proud to help our clients navigate it with confidence.
Looking ahead
While the rental sector faces ongoing challenges, it also presents opportunities for those who stay informed and work with the right partners. At Oakheart, we’re here to provide that trusted support, whether you're letting a property, searching for a new home, or simply seeking expert advice.
For tailored guidance on letting or renting in Essex or Suffolk, contact the Oakheart Lettings team today.
📞 01206 803 303 / 01473 251 907
📧 [email protected]
