Average private rents across the UK continued to rise at the end of last
year, but the
pace slowed again,
the Office for National Statistics (ONS) says.
Its data shows that average monthly rents increased by 4% in the 12 months
to December 2025, to £1,368.
That’s down from 4.4% annual growth recorded a month earlier.
England saw an average rent of £1,424, up 3.9% year on year, which is the
weakest annual rise since May 2022.
Wales saw rents climb to £822, an annual increase of 5.7%, while Scotland’s
average reached £1,018, rising by 2.8%, its lowest growth rate for more than
four years.
In Northern Ireland, rents increased by 5.7% to £873 in October.
Regional variations show that in England, the North East posted the fastest
rent inflation at 7.9%, while London recorded the slowest at 2.1%.
Supply-demand gap narrows
Zoopla’s executive director, Richard Donnell, said: “Rental inflation is
slowing as the supply-demand gap narrows sharply.
“Improved affordability for first time buyers and a large drop in
international migration means weaker rental demand, while there are 14% more
homes for rent than a year ago, which is boosting choice for renters.
“Rental inflation is returning to normal and rents are on track to rise by
just 2.5% in 2026, the lowest for four years.”
Hampshire Trust Bank’s managing director of specialist mortgages, Alex
Upton, said: “While the latest ONS data shows a slowdown in rental growth,
the underlying pressure has not gone away.
“Demand remains strong, supply is still tight, and that imbalance continues
to feed through into pricing.”
Rents end year lower
The
ONS data
landed just days after Hamptons reported that rents for new tenancies across
Great Britain ended 2025 lower than where they began for the first time on
record.
Its Lettings Index shows newly agreed rents fell by 0.7% over the year, the
first full calendar year decline since the series started in 2011.
On average, tenants moving home paid £1,371, £10 less than a year earlier
for the same property.
Five of the 11 regions Hamptons tracks recorded annual falls by December,
compared with none a year earlier.
Tenants have more choice
The firm’s head of research, Aneisha Beveridge, 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.”
Landlords invest
Meanwhile, fresh figures from UK Finance highlight that more
landlords are investing
in the PRS.
In the third quarter of 2025, 59,467 new buy to let loans were advanced.
They were worth £10.9 billion, a sharp rise of 22.7% by number compared with
the same period a year earlier.
The organisation also says that average gross rental yields improved to
7.15%, up from 6.93% a year before, helped by easing borrowing costs.
The average interest rate on new buy to let loans fell to 4.85%, while
interest cover ratios strengthened to 215%.
Rent data affects landlords
The managing director of Accommodation for Students, Simon Thompson, said:
“The data being reported here is interesting because it shows rent growth is
still slowing, which affects all landlords.
“While rents grew by 4%, on average, there are regional variations,
particularly across England and in London.”
He added: “Hamptons says newly agreed rents ended the year 0.7% lower than
they began for the first time on record.
“Despite cooling rents, it appears that landlords are still looking to
invest in the private rented sector.”
