Rents grew by 2.2% in 2025 but growth is cooling

Average advertised rents across Britain ended 2025 up 2.2%, with growth easing as tenant competition cooled and more homes came onto the market.

That’s according to new figures from Rightmove which says that outside London, asking rents fell 1.1% in the final quarter of the year.

They are down £15 to £1,370 to become the second quarterly fall in five years.

However, rents finished the year £29 higher than in 2024, the weakest end-of-year increase since 2018.

Landlords enjoy cheaper BTL mortgages

Rightmove’s property expert, Colleen Babcock, said: “There is still a long-term shortage of available rental homes, but it looks like landlords are taking advantage of cheaper available mortgage rates, and more available homes will benefit tenants.

“Existing tenants or those looking to rent their own home for the first time are likely to experience a much more settled and balanced market than a few years ago, when the competition to secure a home was frenetic.”

She added: “There is much greater availability of homes, and fewer tenants to compete with now, which should hopefully make the experience more positive for renters.”

Rightmove expects rents to climb by a further 2% this year and the balance between supply and demand is healthier than during the pandemic years.

London rents fall

Average advertised rents in London slipped 0.7% between October and December, easing by £20 to £2,716.

Over the full year, London rents rose 0.8%, the slowest pace since 2020, when the pandemic pushed prices lower.

Regional trends show rents increased least in the North East at 0.4% and London at 0.8%.

The strongest growth was recorded in the North West at 3.6% and Yorkshire and The Humber at 3.1%.

More homes to rent

The number of available homes to rent is now 9% higher than a year ago but that’s a third lower than a decade ago.

Tenant demand has softened from recent highs and there was an average of 10 enquiries per available property, down from fourteen in 2024.

That’s still above the pre-pandemic level of six which was seen in 2019.

London landlords average seven enquiries per home, compared with sixteen across the North West and Scotland.

PRS is becoming balanced

Propertymark’s chief executive, Nathan Emerson, said: “These figures show the rental market is gradually moving away from the volatility of recent years and towards a more balanced position.

“Slower annual rent growth and modest quarterly falls in some areas will offer some relief to tenants after a prolonged period of sharp increases.

“However, moderation should not be mistaken for recovery.”

He adds: “Rental supply remains well below the pace needed across the long-term to stay in keeping with demand.”