UK Average Rents Increasing

UK Average Rents Increased by 6.7% in 12 Months: A Summary for Somerset Landlords

With recent changes to taxes and added regulations introduced in the private rented sector, there has been a concern about whether being a landlord is still financially worthwhile. The higher mortgage rates experienced in the last few years have also caused many landlords to reassess their property business strategies.

One of the key considerations is how the rental market is performing and some positive news for landlords is that average rents are continuing to increase. According to the latest data from the Office of National Statistics, the average UK monthly rents increased by 6.7% in the 12 months up to June 2025.

While the inflation rate has slowed down a little from the previous month, the data shows that the high demand for rental properties is ensuring that rental inflation is still strong. The rents inflation rate has varied across different regions, with the North East seeing an annual increase of 9.7%. Meanwhile, in London, the increase was 7.3% and in the South West, as slightly more modest inflation of 4.8% was recorded in the year leading to June 2025.

Key Statistics for Somerset

If you are a landlord in Somerset wondering how the local rental market is performing, the annual inflation rate in Somerset specifically was 5.7% in the 12 months to June 2025. The average monthly rent for properties in Somerset is at a high of £950. This is an average increase in monthly rent of £173 since June 2022.

A breakdown by property type reveals the following average monthly rents by number of bedrooms for rental properties in Somerset:

1-bedroom - £644

2-bedrooms - £852

3-bedrooms - £1,059

4-bedrooms+ - £1,525

Areas with the Highest Rents Inflation

There have been notable variances in rents inflations across different parts of Somerset, with Bath and North East Somerset experiencing an 11.4% monthly rental inflation in the 12 months up to June 2025. The average monthly rent for all properties in Bath and North East Somerset was £1,747, as of June 2025.

Over the same period, North Somerset recorded an 8.2% rents inflation, with an average monthly rent for all properties of £1,164.

So, the rental inflation in both of these areas surpassed the UK average inflation rate.

Rules Around Rent Increases

Landlords are allowed to increase rent but there are rules that must be followed. For periodic tenancies, the rent can be increased once per year and the increase must be fair and realistic. For fixed-term tenancies, landlords can only increase the rent if the tenant agrees or at the end of the fixed term.

When the Renters’ Rights Bill comes into effect, rules around rent increases will be strengthened. For example, landlords will not be able to increase rent in the first year of the tenancy and tenants will have the right to challenge rent increases if they believe them to be unfair. Tribunals will be used to decide whether a proposed increase is in line with the open market rent if the tenant challenges it.

With these upcoming changes in mind, it is important that landlords have a good understanding of the local rental market when they apply or propose any increases.

As an experienced letting agent in Somerset, we help local landlords to navigate the legalities of rent increases, as well as the many other pieces of legislation in place within the sector. If you would like to discuss any aspect of your rental property in more detail, please get in touch.