Rental worth hikes take a pause amid extra balanced market

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Your help makes all of the distinction. Learn extra The hike in rental costs being requested of tenants took a pause on the finish of final 12 months, in accordance with figures from a property web site.

Marketed rents fell between October and December 2025 in contrast with the earlier three months, Rightmove stated, however asking rents have been nonetheless larger than a 12 months earlier.

The typical month-to-month asking lease throughout Britain, excluding London, fell by £15 within the fourth quarter of 2025, in contrast with the earlier three months.

Rightmove stated it is just the second time in 5 years that marketed rents have fallen on a quarterly foundation.

The typical marketed lease per thirty days exterior of London within the fourth quarter of 2025 was £1,370 – 1.1%, or £15, decrease than the common asking lease of £1,385 within the third quarter of final 12 months.

Regardless of the quarterly fall, asking rents per thirty days exterior London have been nonetheless 2.2% or £29 larger than a 12 months earlier, Rightmove stated.

The web site stated that is the bottom tempo that annual rental development has been at throughout the finish of a 12 months since 2018.

Inside London, common month-to-month marketed rents fell by 0.7% or £20 within the fourth quarter of final 12 months in contrast with the earlier quarter.

This took the common month-to-month marketed lease in London within the fourth quarter of 2025 to £2,716.

Common marketed rents in London rose by 0.8% yearly, marking the bottom annual development fee since 2020, when rents fell in London throughout the coronavirus pandemic.

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Wanting throughout 2026, Rightmove predicts that common marketed rents will rise by an extra 2%.

It stated the steadiness between provide and demand has considerably improved because the pandemic years, which has been a key driver of 2025’s lower-than-usual yearly lease development.

Colleen Babcock, a property professional at Rightmove, stated: “There's nonetheless a long-term scarcity of obtainable rental properties, however it seems to be like landlords are making the most of cheaper out there mortgage charges, and extra out there properties will profit tenants.

“Current tenants or these seeking to lease their very own house for the primary time are prone to expertise a way more settled and balanced market than a number of years in the past, when the competitors to safe a house was frenetic.

“There's a lot larger availability of properties and fewer tenants to compete with now, which ought to hopefully make the expertise extra constructive for renters.”

Sarah Leslie, lettings supervisor at Jackson-Stops Sevenoaks, stated: “Tenant priorities have gotten clearer as working patterns proceed to evolve.

“Demand is strongest for well-located properties that provide personal out of doors area and good transport hyperlinks, significantly as extra employers encourage a return to office-based working.

“Rents are prone to proceed rising at a measured tempo, supported by restricted provide and ongoing demand.”

Christina Harris, director, Cheffins, stated: “In direction of the tip of final 12 months we additionally noticed a rise in provide, however as wages had not stored tempo with rental values, affordability grew to become a key problem for a lot of tenants.

“With tenants sometimes needing to earn round thrice the price of lease, common rents in cities comparable to Cambridge have been merely out of attain for some.

“Provide stays far behind the place it must be. The constant scarcity of fine high quality, well-presented rental properties will little doubt put upward stress on rents within the coming months.

“Folks nonetheless want to maneuver for work or faculties, and because the scarcity of availability continues, it's doubtless that costs will edge up over the following 12 months.”

Aneisha Beveridge, head of analysis at Hamptons, stated: “Rental development slowed noticeably by means of a lot of 2025 because the market started to rebalance.

“Nevertheless, tenants renewing contracts are nonetheless prone to face will increase, with many landlords aiming to shut the hole between present rents and market ranges after the exceptionally robust development seen between 2022 and 2024 when double-digit will increase have been extra frequent than not.

“This moderation displays weaker demand at each ends of the spectrum.

“Falling mortgage charges have enabled extra renters to step onto the housing ladder, whereas stretched affordability has stored others residing with household for longer.

“Collectively, these components have eased the extraordinary competitors for properties that characterised the previous few years, decreasing stress on rents.”