After more than a decade of consistent growth, UK rents shifted direction in 2025. Rents across Great Britain ended the year lower than they began for the first time on record, while landlord buying fell to the lowest level ever. The scale and timing of the shift raise questions about what changed in the market last year, and whether the forces behind it are likely to persist.
According to the data, newly agreed UK rents fell by 0.7 per cent across Great Britain over the course of 2025, marking the first annual decline since the annual index began in 2011. By the end of the year, five of the 11 regions were recording lower rents than a year earlier, compared with none at the end of 2024. The average tenant moving into a property paid £1,371 per month, £10 less than in 2024 for the same property.
London recorded the largest decline, with newly agreed rents down 2.7 per cent over the year, equivalent to £63 per month. This took average rents in the Capital back to June 2023 levels. Falls were also recorded in the South East, East Midlands, Yorkshire and the Humber and Wales. A further three regions posted annual growth of less than 1 per cent, indicating that more areas could move into negative territory in early 2026.
Despite higher stock levels, the increase in available rental properties was driven primarily by weaker demand rather than a rise in new landlord purchases. The number of residential properties available to rent at the end of December was 6 per cent higher than a year earlier and only 8 per cent below 2019 levels, compared with being more than 50 per cent lower during the post-pandemic rental surge.
Landlord purchasing activity continued to decline throughout 2025. Just 10.9 per cent of properties bought across Great Britain were purchased by landlords, down from 12 per cent in 2024 – the lowest market share since the researchers’ records began. This was also the first full year in which landlords paid the higher 5 per cent stamp duty surcharge. The North East remained the most investor-heavy region, where landlords accounted for 29 per cent of purchases, while the South East, East of England and North East were the only English regions to record a year-on-year increase in investor buying.
Renewal rents continued to rise, increasing by an average of 3.3 per cent across Great Britain to £1,310 per month. This narrowed the gap between new lets and renewals to £61 per month, the smallest difference since mid 2021.
Commenting on the findings, Aneisha Beveridge, Head of Research at Hamptons, which conducted the research on UK rents, said: “On paper, 2025 looked like a good year for tenants. Rents on new lets ended 2025 lower than they started, and tenants had more choice than before. However, falling rents were driven more by strong first-time buyer numbers and wider economic weakness than by improved tenant affordability.”
Hampton’s data also indicates that while rental growth has eased, ongoing regulatory changes and low investor appetite may continue to shape supply and pricing across the rental market in the year ahead. Beveridge added: “2026 brings the implementation of the Renters’ Rights Act in May, which bans offers above the asking rent. This means that agreed rents and advertised rents may start to rise at different rates. The block on landlords accepting a price above what they asked for is likely to push up advertised rents, with more tenants making offers below the higher asking price instead. However, at least initially, it is unlikely to impact the values actually being achieved.
But towards the back end of the year, it’s possible the implementation of the Renters’ Rights Act may start proving inflationary for agreed rents. If landlords start to find the procedural and legal machinery underpinning the new rules lacking, it is likely to slowly squeeze rental homes out of the market. From a supply perspective, the lack of appetite means the share of homes bought by investors could fall below 2025’s already low levels.”
It will be interesting to see how these factors continue to shape the UK rents in 2026 and beyond.
