Average UK rents fell to £1,317 in December 2025, down 1.5% from £1,337 in November, as the Renters Rights Act approaches, according to the latest HomeLet Rental Index figures.
Despite the monthly drop, rents remain 2.6% higher year-on-year, up from £1,284 in December 2024.
Excluding the capital, rents proved 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 when they stood at £1,100.
While some easing appears at a national level, the data points to a market that is stagnating rather than correcting, with regional variation masking a broadly steady picture.
London rents were £68 (3.1%) cheaper than in November and 2.8% higher than in December 2024, averaging £2,129 for the month.
"December's Rental Index figures represent a market that is pausing for breath rather than moving decisively in either direction," said Will Eastman, head of legal at HomeLet and Let Alliance. "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 try to understand the full impact of the upcoming changes in May, he explained.
"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," Eastman added.
The December 2025 HomeLet Rental Index showed the average UK rent at £1,317, down 1.5% month-on-month but up 2.6% year-on-year. Outside Greater London, the average stood at £1,124, down 0.8% month-on-month and up 2.2% year-on-year. Greater London averaged £2,129, down 3.1% month-on-month but up 2.8% year-on-year.
Greater London recorded the largest monthly change at minus 3.1%, followed by Yorkshire and Humberside at minus 1.7% and Northern Ireland at minus 1.2%.
Northern Ireland posted the strongest annual increase at 9.3% year-on-year, followed by the North East at 6.6% and the East Midlands at 4.9%. The South East saw an annual decline of 1.1%, while the North West fell 0.2%.
