The English rental market is entering a new chapter—and not one you can skim over. With employee relocation budgets already feeling the squeeze, 2025 is stacking up to be a year of sharper planning, greater nuance, and even more creative housing strategies. So what’s really going on, and what does it mean for companies relocating talent to the UK?
Here’s the reality: rental supply is up, but so are costs. Legislation is changing, affordability is wobbling, and regional variation remains as dramatic as ever. For relocation professionals and HR decision-makers, this all amounts to one thing: it’s time to adapt.
Demand is relentless, supply is recovering—but the gap is still wide
Rightmove and Zoopla data show a definite uptick in available rental homes. But before we break out the party poppers, let’s not forget the 12 renters competing for every property. Demand is still 10% above pre-pandemic levels, while supply remains about one-third below. In our experience, this imbalance drives a higher level of employee stress during the housing search—especially when relocating from overseas.
Rental prices are still rising (albeit more slowly), and many regions are seeing record-high rents despite the added stock. Why? Because affordability has become a stretch, even for well-paid professionals. For employers, that means relocation budgets need to flex, or risk losing candidates to better-supported offers.
Legislation is shifting the power dynamic—and the landscape
The Renters’ Rights Bill, due mid-2025, will eliminate fixed-term tenancies and end no-fault evictions. From a tenant’s perspective, that’s welcome news. For landlords? Not so much. The likely impact: landlords raising rents to cover perceived risk and future-proofing against potential voids.
Other legal shifts include:
- Annual cap on rent increases
- Stricter property standards (via Awaab’s Law)
- Mandatory landlord registration
These changes may well result in a short-term retreat by some landlords, but the more likely outcome is a quiet reshaping of the English rental market—more selective landlords, fewer informal tenancies, and more professionalised management. That could benefit corporate tenants, if you’re prepared.
Economic pressures are pricing out renters—including your talent
High interest rates, persistent inflation, and rising landlord costs all spell one thing: higher rents. Even if price hikes slow, the base cost is already historically high. London leads the charge, but even cities like Manchester and Birmingham are feeling the pinch.
With many landlords now operating at thinner margins, the room to negotiate is shrinking. For companies relocating employees, especially mid-level professionals or those with families, the need for flexible support—from staged allowances to temporary housing extensions—has never been clearer.
A one-size-fits-all policy no longer cuts it
The days of setting a flat housing allowance and hoping for the best are gone. A smarter approach is now essential:
- Tailor allowances to location and role seniority.
- Consider serviced apartments or build-to-rent schemes for a smoother start.
- Offer support with deposits, furniture, or upfront costs where possible.
And please, don’t leave your relocating employees Googling “UK tenancy laws” at midnight. Equip them with proper guidance, preferably through an experienced relocation partner who knows the difference between a decent flat and a rental horror story.
Regional variation is your secret weapon (if you use it well)
London might be your default, but it shouldn’t be your only option. Regional cities offer:
- Lower rents (often 30–50% cheaper)
- Shorter commute times
- Stronger work-life balance
Some of our clients are already shifting teams to places like Birmingham, Leeds or Bristol. Not only does this ease housing costs, but it can help with retention, too. Employees aren’t just looking for a pay rise—they want a life that works.
Final Thoughts on the English Rental Market
The English rental market in 2025 is unpredictable, but not unmanageable. With the right data, partners, and internal policies, companies can still deliver positive relocation experiences without blowing the budget.
Actionable steps:
- Reassess your housing allowances now
- Diversify your destination strategy
- Explore alternative housing types
- Increase pre-arrival education and support
The smartest organisations are those that respond to market trends before they hit crisis point. The question isn’t whether the rental market will affect your relocation programme—it already is. The real question is: what are you going to do about it?
Speak to one of our experts or send a message today and find out how we can add value to your relocation programme.
