After years of relentless rent hikes and fierce competition, the UK rental market may finally be entering a period of adjustment. Recent figures suggest that rental price growth is slowing, giving both tenants and landlords a moment to catch their breath. At the same time, the long-anticipated Renters (Reform) Bill is moving closer to becoming law, aiming to transform tenant protections across England. So what does this all mean for landlords, renters, and property investors in South East London and North Kent?
According to the ONS, UK private rental prices rose 7.0% in the year to May 2025—still high, but slightly down from recent peaks and the slowest rate recorded in over six months. In London, annual growth was 6.0%, reflecting a noticeable easing compared to 2023, when rents rose at record levels. South East London and parts of North Kent, previously among the fastest-rising areas, are seeing increased supply and reduced upward pressure on rents as more tenants weigh up the cost of renting versus buying.
Interestingly, a new study by Zoopla found that in nearly 60% of UK locations, it is now cheaper to buy a home with a mortgage than to rent one. This shift is being driven by softening mortgage rates and years of steep rental inflation, especially for two-bed and three-bed homes—the sweet spot for young families and professional sharers in places like Sidcup, Abbey Wood, and Dartford.
Layered on top of this is the Renters (Reform) Bill, which passed its third reading in Parliament and is expected to come into force by late 2025. The bill proposes to:
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Abolish Section 21 “no-fault” evictions
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Introduce periodic tenancies by default, ending fixed-term contracts
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Strengthen tenant rights to keep pets
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Establish a new Private Rented Sector Ombudsman to resolve disputes faster
For landlords, this could mean longer tenancies and more procedural requirements if seeking possession. For tenants, the proposed reforms promise greater security and flexibility. However, the changes may also prompt some landlords—especially smaller or accidental ones—to consider exiting the market, potentially reducing rental supply over the medium term.
Locally, we're already seeing some landlords adjusting strategies. Some are upgrading properties to meet higher standards and appeal to longer-term renters, while others are exploring selling to take advantage of relatively high asset valuesbefore the legislative changes bite. Meanwhile, professional investors are eyeing opportunities to snap up rental stock as amateur landlords exit.
What should tenants and landlords do now?
Tenants might find slightly more choice on the market this summer and be in a stronger negotiating position than in previous years. It’s still essential to act fast when a well-priced, high-quality property becomes available, but you may be less likely to face bidding wars or excessive rent increases.
Landlords should prepare for change. Reviewing tenancy agreements, understanding the upcoming reforms, and planning for new requirements is essential. If you’re considering selling or restructuring your portfolio, it’s worth acting early—before the new rules come into force and before any changes in market sentiment reduce demand.
In Summary:
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Rental growth is slowing, especially in London and commuter areas like South East London and North Kent.
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Buying is now cheaper than renting in many locations, including parts of our area.
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The Renters (Reform) Bill will dramatically reshape the rental landscape, ending no-fault evictions and changing tenancy structures.
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Landlords should review strategies, and tenants may find improved conditions in the short term.
Whether you're a landlord adjusting to change or a tenant exploring your options, we’re here to help. Our local expertise in South East London and North Kent ensures you get tailored advice for your situation. Contact our team today to discuss your next move with confidence.