An agents’ chief has issued a dire warning, stating that upcoming changes in 2025 could render buy-to-let investments unviable for landlords.

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Reacting to recent rent increases reported by official government figures, he expressed his concerns: “The lettings market continues to prove challenging to those who rent. Ultimately the sector is about to undergo one of the biggest evolutions in over thirty years with a raft of new legislation proposed that will fundamentally alter the viability for some landlords to even operate.

“It remains important the UK Government encourages a diverse mix of housing options, especially as demand on rental sector is expected to considerably expand across the next ten years. ?  ?

“It is crucial there is sensible support in situ that encourages long term investment in rental properties and that both tenants and landlords are treated with equal fairness to keep an objective oversight on a system that is increasing coming under additional pressure to keep pace with ever increasing demand.”

His remarks follow the publication of government data revealing that private rents surged by 9.1% in the year leading up to November, reaching an average of £1,319 across the UK.

This figure is nearly on par with the record increase of 9.2% observed in March this year.

Over the past 12 months to November 2024, average rents climbed to £1,362 - 9.3% - in England, £772 - 8.0% - in Wales, and £980 - 6.5% - in Scotland.

In Northern Ireland, the latest available data shows that average rents rose by 9.0% over the 12 months leading up to September.

In London, rents experienced the highest inflation in England, with an annual increase of 11.6% for the 12 months leading up to November. This rise surpassed the 10.4% increase seen in the previous 12 months ending October 2024, marking a record-high annual growth for London. The surge in London's rent inflation was driven by two consecutive months of significant rent increases, in contrast to the smaller rises from the previous year.

In November 2024, Yorkshire and The Humber saw the lowest annual rent inflation at 5.7%, down slightly from 5.9% in the previous 12 months ending October 2024.