Rental Market Report December 2025
Our quarterly Rental Market Report is based on our analysis of tens of thousands of rental data points across the UK.
Executive summary:
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UK rent inflation slows to 2.2% – demand drops 20%, supply up 15%
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Sharp decline in migration and more first-time buyers reduce demand for renting
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Rental supply is higher across the country, but lower in London due to weak landlord economics – low yields and high costs
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Homes are taking longer to let, signaling easing market pressure
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Rental inflation is strongest in more affordable areas where rents are lower, with slowdown in higher rental value markets
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Rents are expected to rise modestly by 2.5% in 2026 amid limited new investment in rental supply
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