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A Look Back at Rent Trends in 2025, and How Deposit Alternatives Are Reshaping Renting

Written by flatfair | Oct 15, 2025 8:03:35 AM

As 2025 comes to an end, the UK rental market looks calmer but not necessarily cheaper. Rent growth has finally slowed after years of sharp increases, yet affordability remains a major concern. With upfront costs still high, many renters are turning to deposit alternatives as a smarter, fairer way to move.

Cooling Rents, But Rising Costs

UK rents rose by around 5.7% in 2025, according to the ONS — slower than the double-digit jumps seen in 2023 and 2024. In London, rents hit an average of £2,700 per month, and outside the capital, £1,365.

Even as growth cools, the cost of moving remains steep. Between deposits, advance rent, and moving expenses, tenants can still face £3,000–£5,000 upfront before collecting the keys.

That’s why deposit alternatives have gained traction — allowing renters to pay a small, one-off fee instead of locking away a traditional five-week deposit. It’s a simple shift that can free up thousands of pounds for furnishing, bills, or savings.More Choice, More Flexibility

This year also brought a slight increase in rental listings, giving tenants a bit more choice and leverage. But while competition eased, most landlords still ask for full deposits.

To attract reliable renters faster, many agents now highlight 'deposit-free options accepted',  making it easier for tenants to move quickly and affordably. It’s a sign that flexibility is becoming just as important as rent price.The Year of Fairer Renting

With the Renters’ Rights Bill moving through Parliament, 2025 focused heavily on fairness and tenant protection. Deposit alternatives align perfectly with that trend — offering renters more access and landlords the same level of security, without the financial barrier of a traditional deposit.

Looking Ahead 
The takeaway from 2025? Renting is changing — and deposit alternatives are driving that change.

As rents plateau but costs remain high, solutions like flatfair are helping tenants move in faster, keep more cash in their pockets, and rent on fairer terms.