Rents have edged lower over the past month and are barely higher than a year ago ahead of the first phase of the Renters’ Rights Act
The latest HomeLet Rental Index figures show that average UK rents fell slightly to £1,317 in December 2025, down 1.5% month-on-month from £1,337 in November. Despite the monthly drop, rents remain 2.6% higher year-on-year, up from £1,284 in December 2024.
Excluding the capital, rents were slightly more stable with the average at £1,124, a 0.8% monthly decrease from £1,133, and 2.2% higher than a year ago (£1,100 in December 2024).
While there is some easing at a national level, the data points to a market that is stagnating rather than correcting, with regional variation masking a broadly steady picture.
In London, Rents were £68 (3.1%) cheaper than in November and 2.8% higher than in December 2024. The average rent for December 2025 was £2,129.
Will Eastman, head of legal at HomeLet and Let Alliance, said: “December’s Rental Index figures represent a market that is pausing for breath rather than moving decisively in either direction. We’re seeing signs of stagnation, with small dips in some regions, but no clear trend of sustained increases or decreases.
“A major driver of the uncertainty is the Renters’ Rights Act, as landlords are trying to understand the full impact of the upcoming changes in May. Many landlords are considering higher rents on new tenancies due to the new legislation around rent increases and bidding wars, but with laws around evictions also changing, concerns over arrears mean they’re wary of pricing properties beyond tenants’ reach.
“This hesitation is likely to keep the market relatively steady in the short term, as landlords, letting agents and tenants all work out the best course of action. In a market where legal and regulatory change is shaping decisions as much as underlying demand, rent guarantee insurance and robust legal support have never been more important. They provide a level of security for landlords, helping them to plan with more confidence.”
Key Data from the December 2025 HomeLet Rental Index:
Average UK rent: £1,317 (-1.5% MoM, +2.6% YoY)
UK excluding Greater London: £1,124 (-0.8% MoM, +2.2% YoY)
Greater London: £2,129 (-3.1% MoM, +2.8% YoY)
Largest monthly changes:
Greater London: -3.1%
Yorkshire & Humberside: -1.7%
Northern Ireland: -1.2%
Strongest annual increases:
Northern Ireland: +9.3% YoY
North East: +6.6% YoY
East Midlands: +4.9% YoY
Regions with annual declines or near-flat growth:
South East: -1.1% YoY
North West: -0.2% YoY
December 2025 table:
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