However, Goodlord’s data shows that the annual inflationary bump is lower than the year-on-year rental inflation recorded the previous December and far below the 4.6% recorded in both January and March of 2025.

According to month-on-month figures, average rents across December also hit their lowest levels since March, dipping by 2.5% compared to November.

Meanwhile, December’s rental price averages dropped to their lowest level in nine months at £1,214 across England.

This compares to November’s average of £1,245, representing a decrease of £31 per month, or £372 per year.

Rents haven’t been this low since March 2025, when they averaged £1,213 per property, per month.

The biggest shift in month-on-month rental costs was seen in the South West, where prices dropped by 4% during December.

The only region to record an increase in rental costs was the North West, where a very small increase of 0.3% was tracked.

Last year’s rental price average peaked in July at £1,496, which Goodlord says means rents ended the year 19% lower than the annual peak.

Data also found that void periods remained broadly steady during December, ending the month with an average void length of 23 days, only one day shorter than November’s average of 24.

Year-on-year, voids in December 2025 were longer compared to the same time the previous year. In December 2024, voids were recorded at 21 days on average.

Goodlord chief executive William Reeve says: “We’d expect to see some month-on-month price deflation during December – it’s typically one of the slowest times of year for the market – but what’s far more interesting is what’s happening across the year-on-year figures.”

“Despite ending the year up 2%, December’s annual inflation figures are far lower than we’ve seen in previous years and lower still compared to 2025’s inflationary peak of 4.6%.

“Whilst it’s too soon to tell for sure whether this is a seasonal blip or the beginning of a cooler run of inflationary pressures, the wider signs indicate that 2026 will be another intense year for the market.”

“The Renters’ Rights Act is coming into force in May which could squeeze supply and demand even further if landlords decide to exit the market. The combination of the predicted summer surge plus the shift in the legislative landscape means we could be on for another record breaking year.”