New data from the HomeLet Rental Index shows that average rents across the UK edged down in December 2025, even as annual rental growth remains positive — underscoring market uncertainty ahead of the upcoming Renters’ Rights Act reforms.
According to the latest figures, the average UK rent fell to £1,317 in December, a 1.5% drop from November’s £1,337. Despite this monthly decline, rents were still approximately 2.6% higher than a year earlier, when the average stood at £1,284.
Once London is excluded, rental trends were steadier: the UK average outside the capital was £1,124, down 0.8% month-on-month and up 2.2% compared with December 2024.
In London itself, rents eased more sharply, with average December rents of £2,129, down 3.1% on the previous month but still 2.8% higher year-on-year.
Industry experts say the data points to a stagnating rental market rather than a significant correction. Small monthly decreases across regions are balanced by modest annual growth, reflecting mixed dynamics in local markets.
Will Eastman, Head of Legal at HomeLet and Let Alliance, said December’s results suggest the sector is “pausing for breath.” He noted that landlords are approaching the Renters’ Rights Act with caution, uncertain how the legislation will affect future rental pricing and eviction rules.
With the Renters’ Rights Act set to introduce sweeping changes — including alterations to how rent increases and evictions are handled — landlords are reportedly wary of setting rents too high amid evolving legal responsibilities.
Overall, while rents continue to rise year-on-year, the latest figures underline a market marked by caution and gradual shifts rather than rapid growth as legislative changes approach
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