Rental price hikes take a pause amid more balanced market – Rightmove

The hike in rental prices being asked of tenants took a pause at the end of last year, according to figures from a property website.

Advertised rents fell between October and December 2025 compared with the previous three months, Rightmove said, but asking rents were still higher than a year earlier.

The average monthly asking rent across Britain, excluding London, fell by £15 in the fourth quarter of 2025, compared with the previous three months.

Rightmove said it is only the second time in five years that advertised rents have fallen on a quarterly basis.

The average advertised rent per month outside of London in the fourth quarter of 2025 was £1,370 – 1.1%, or £15, lower than the average asking rent of £1,385 in the third quarter of last year.

Despite the quarterly fall, asking rents per month outside London were still 2.2% or £29 higher than a year earlier, Rightmove said.

The website said this is the lowest pace that annual rental growth has been at during the end of a year since 2018.

Within London, average monthly advertised rents fell by 0.7% or £20 in the fourth quarter of last year compared with the previous quarter.

This took the average monthly advertised rent in London in the fourth quarter of 2025 to £2,716.

Average advertised rents in London rose by 0.8% annually, marking the lowest annual growth rate since 2020, when rents fell in London during the coronavirus pandemic.

Looking across 2026, Rightmove predicts that average advertised rents will rise by a further 2%.

It said the balance between supply and demand has significantly improved since the pandemic years, which has been a key driver of 2025’s lower-than-usual yearly rent growth.

Colleen Babcock, a property expert at Rightmove, 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.

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

Sarah Leslie, lettings manager at Jackson-Stops Sevenoaks, said: “Tenant priorities are becoming clearer as working patterns continue to evolve.

“Demand is strongest for well-located homes that offer private outdoor space and good transport links, particularly as more employers encourage a return to office-based working.

“Rents are likely to continue rising at a measured pace, supported by limited supply and ongoing demand.”

Christina Harris, director, Cheffins, said: “Towards the end of last year we also saw an increase in supply, but as wages had not kept pace with rental values, affordability became a key issue for many tenants.

“With tenants typically needing to earn around three times the cost of rent, average rents in cities such as Cambridge were simply out of reach for some.

“Supply remains far behind where it needs to be. The consistent shortage of good quality, well-presented rental properties will no doubt put upward pressure on rents in the coming months.

“People still need to move for work or schools, and as the shortage of availability continues, it is likely that prices will edge up over the next year.”

Aneisha Beveridge, head of research at Hamptons, said: “Rental growth slowed noticeably through much of 2025 as the market began to rebalance.

“However, tenants renewing contracts are still likely to face increases, with many landlords aiming to close the gap between existing rents and market levels after the exceptionally strong growth seen between 2022 and 2024 when double-digit increases were more common than not.

“This moderation reflects weaker demand at both ends of the spectrum.

“Falling mortgage rates have enabled more renters to step onto the housing ladder, while stretched affordability has kept others living with family for longer.

“Together, these factors have eased the intense competition for homes that characterised the past few years, reducing pressure on rents.”