9:13 AM, 8th January 2026, About 7 days ago
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The private rented sector ended 2025 with a smaller than expected rise in rents as they grew by 2% year on year.
That’s according to the Goodlord rental index which also shows there’s a clear slowdown from the momentum seen earlier in 2025.
Even though demand is traditionally weak in winter, the monthly average fall suggests tenants are facing less competition for homes.
Across England, the average rent was £1,214 in December, compared with £1,245 in November.
The £31 fall helped to trim annual spending by £372 for new renters.
The firm’s chief executive, William Reeve, said: “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%.”
He added: “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.”
Mr Reeve says the Renters’ Rights Act will squeeze supply and demand if landlords decide to exit the market which could lead to ‘another record breaking year’ for rents.
The index also shows that voids lengthened in the South East and North West, but held steady in Greater London.
They shortened in the East Midlands, North East, South West and West Midlands.
Year on year, the vacancy gap grew from 21 days in December 2024 to 23 days in December 2025.
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