April & May 2025 Rental Market Update
23rd June 2025- Area: Cheltenham
- Area: Stroud
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Growing Local Demand Pushes Some Rent Prices Above The National Average
Stay informed about the thriving, local lettings market and the latest average rental values.
If you’re an existing landlord, how confident are you that you’re getting the optimum return on your investment?
At The Property Centre, part of our service is to carry out an annual rent review. Together with keeping on top of all landlord legislation, handling any maintenance issues and acting as the main point of contact with tenants, our experienced property management teams not only remove the stress from being a landlord, but help them make the most of their investments.
Despite the plateau reported in our last update, rental prices have risen since last year. Whilst rental values in Gloucester and Worcester have grown on a par with the national increase, rental properties in both Cheltenham and Stroud are achieving especially greater prices.
The numbers below talk about the average price for Let Agreed properties in the areas we work in between 01/04/2025 and 31/05/2025.
Average Rental Prices In Your Area
Source: TwentyEA
The latest information from Office for National Statistics has shown a 7.1% increase across England in the last year. With an average rental price of £1,394 per month across the country, our local areas are following a similar upwards trend whilst both Cheltenham and Stroud exceed the National Average with their average Let Agreed prices of £1,500 and £1,450 respectively.
Properties prices have generally seen a great increase compared to this time last year, but we have seen this in the properties we manage too. Our Gloucester rentals have increased their average rental price by 5.16%, Cheltenham and Worcester both by over 4% and Stroud with approximately 3%. An overall increase is to be expected with the increase in rental demand allowing landlords to increase their rent prices.
Through our experienced property management team, our landlords are always kept up to date with a yearly rent review to stay on top of their investments return. Use the button below to see what you could be earning.
"Average UK monthly private rents increased by 7.0%, to £1,339, in the 12 months to May 2025 (provisional estimate); this annual growth rate is down from 7.4% in the 12 months to April 2025.
Average rents increased to £1,394 (7.1%) in England, £799 (8.5%) in Wales, and £999 (4.5%) in Scotland in the 12 months to May 2025.
Average UK house prices increased by 3.5% (provisional estimate), to £265,000, in the 12 months to April 2025. This annual growth was down from 7.0% in the 12 months to March 2025. This is the first slowing of UK annual house price inflation since December 2023. This was caused by a price fall between March 2025 and April 2025, which coincided with Stamp Duty Land Tax (SDLT) changes."
Private rent and house price annual inflation, UK, January 2016 to May 2025
From the chart above, you can see the ultimate high of rent increases in May 2022 drop through 2023 and peaking for the first time in almost 3 years in 2025. In parallel, the percentage of average rent increase still doubles the previous decade of rental increases, showing the lettings market is still a strong investment.
If you’re unsure as to the current rental value of your investment property, speak to one of our experienced lettings valuers who’ll be happy to advise you.
To keep up to date with the latest market trends and updates, register with us as a buyer, seller, landlord or tenant and receive our monthly market updates.