Leeds Rental Market Update Q1 2025

5 Minute Read - Updated 04/03/2025

Leeds’ annual rent inflation is now at 0.4%. Although this marks a much gentler rise than in many other parts of the country, local renters and landlords alike are still navigating affordability pressures and evolving policy changes. Here are the main points shaping Leeds’ rental scene in early 2025.

1. Modest Rent Growth

Average monthly rent in Leeds stands at £998.00, compared to the UK average of £1,284.
With a 0.4% year-on-year increase, Leeds is still seeing rent rises among major UK cities, although down from 6.9% a year ago.
The national slowdown in rental inflation, now the lowest in 3.5 years, helps explain why UK cities are experiencing reduced growth.

With an average monthly rent of £998.00, significantly lower than the UK-wide figure of £1,284.00, Leeds continues to stand out as a more affordable option for renters. This relative affordability helps the city attract a diverse mix of students, professionals, and families, while also boosting the local economy. By offering better value for money than many other major UK cities, Leeds sustains healthy rental demand and fosters a welcoming environment for newcomers looking to settle and thrive.

2. Easing Demand, but Supply Still Tight

The UK-wide market has 11% more rental homes compared to last year, while tenant demand has dropped by 17%. In Leeds, this has translated into a slight uptick in available properties.
Despite the general improvements, many letting agents report that rental demand remains high relative to supply, which means properties in Leeds can still attract multiple interested renters. Nationally, there are still around 12 people competing for each property; in Leeds, competition can vary by neighborhood but remains above pre-pandemic levels.

While the number of available properties in Leeds remains below pre-pandemic levels, the gradual rise in new listings is an encouraging sign for both tenants and landlords. As supply slowly increases and demand cools from its peak, renters are beginning to enjoy a broader selection of homes. This slight but steady shift bodes well for those seeking a better balance of affordability, comfort, and location in Leeds, hinting at a more stable and accessible rental market overall.

3. Affordability Pressures

The annual cost of renting has risen by roughly £3,000 across the UK over the last three years, though Leeds has been somewhat sheltered with its lower-than-average rental growth.
Cost-of-living challenges continue, and many local renters are feeling squeezed by rising bills, transport expenses, and broader inflationary pressures.
With an annual rent near £12,000, living in Leeds remains more affordable than in southern cities, but the gap with local wages and monthly outgoings is still a concern.

Despite wider cost-of-living concerns, Leeds has maintained some of the most moderate rent increases among major UK cities, which can help ease financial pressures for many tenants. This relative affordability offers residents more breathing room in their budgets, while the city’s strong job market and ongoing investment in housing initiatives provide additional support. Taken together, these factors mean that Leeds remains an attractive and accessible place to rent, promising a more stable housing landscape in the months ahead.

4. Policy Changes and Their Local Impact

The upcoming Renters’ Rights Bill could bring notable shifts for Leeds-based landlords, requiring new tenancy standards and potentially increasing the cost of operating a rental property.
Proposed energy-efficiency requirements (EPC rating of A–C by 2028) may see some older Leeds properties withdrawn if owners find the retrofit costs too high. This may further limit local supply in the longer term.

While new regulations bring added responsibilities for landlords, they’re also designed to foster higher standards in private rentals, including better energy efficiency and improved tenant rights. Leeds, with its proactive landlord community and diverse rental stock, could see these changes translate into more secure tenancies and reduced running costs over time. If managed well, these policy shifts can boost the overall quality of the local rental market, creating a fairer, more stable environment that benefits both landlords and renters.

5. Looking Ahead in Leeds

While net migration and the wider economic climate drive demand in many UK cities, Leeds has a strong local economy and a substantial student population. Together, these factors typically keep rental demand elevated.

With affordability acting as the main brake on higher rent growth, Leeds rents are likely to remain relatively stable in 2025, potentially rising in the 2–3% range if local demand stays resilient and supply does not shrink further.

While economic and regulatory uncertainties may affect the broader market, Leeds is well-placed to weather the changes. Ongoing development projects, a strong local job market, and the city’s enduring appeal to students and professionals all help support stable, long-term demand. As these factors continue to shape the local property scene, Leeds has the potential to maintain its reputation for value and vibrancy, offering renters and landlords alike a positive outlook in the months and years ahead.

Final Thoughts

Leeds continues to offer renters better value for their money. Average rents not only attracts students and young professionals looking for affordability, but also make the city an appealing option for families and those relocating from more expensive areas.

Leeds renters can take some comfort in the fact that annual rent increases are currently modest compared to both national trends and the city’s own recent history. Yet the long-term outlook will hinge on policy changes, affordability, and whether enough new properties become available to meet demand. Landlords, investors, and tenants alike should keep a close eye on these unfolding factors to make the best decisions in the months ahead.

Sources:

Zoopla’s February 2025 UK House Price Index Report
ONS Household Costs Indices (Oct–Dec 2024)
English Housing Survey EPC Data (MHCLG)
The Migration Observatory (December 2024)