Newly-agreed rents dipped by 0.7% over 2025 compared to the previous year, the latest lettings index from Hamptons reveals.

The average tenant moving into a property paid £1,371 per month, which was £10 per month cheaper than last year. It was the first time rents have fallen over a full calendar year since the agency began recording the data in 2011.

Drawing on data from across the Connells Group, Hamptons found that, in 2025 only 10.9% of purchases in Great Britain were by a landlord down from 12% in 2024.

It was the first full year in which landlords paid the higher 5% stamp duty surcharge.

Hamptons says that landlords have retreated slightly from Northern markets as falling interest rates improved returns further South.

Newly-agreed rents first began falling in London in January 2025, but by the end of the year, five of the 11 regions of Great Britain were recording rent falls.

London saw the largest annual reduction, down by 2.7% or £63 per month over 2025 to £2,294, taking rents back to June 2023 levels. 

By December, rents were also falling in the South East (-1.0%), the East Midlands (-0.2%), Yorkshire & Humber (-1.4%) and in Wales (-0.8%).

Three regions – East of England (0.5%), South West (0.7%) and Scotland (0.5% )– saw growth below 1% in 2025, but Hamptons says their current trajectory suggests that these regions could tip into recording falls in early 2026.

Stock levels ended the year 6% higher than in December 2024. 

This primarily reflects weaker demand from renters rather than a jump in new landlord purchases, according to Hamptons.

Head of research Aneisha Beveridge says: “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. 

“Fewer tenants are taking their first step into the rental market, with many staying at home longer and being reluctant to commit to the cost of renting a place of their own.

“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 she says that towards the back end of the year, the new rules may start proving inflationary for agreed rents.  

Beveridge adds: “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.”