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Hamptons\u2019 lettings index shows the average rent on newly let properties fell 0.2% year\u2011on\u2011year in July \u2014 the first annual decline since August 2020 \u2014 driven by an around 3% drop in Greater London. The national cooling masks sharp regional differences and ongoing pressure on households: renewal rents rose roughly 4.5% and average rents remain about a third higher than in 2020.<\/p>\n<\/div>\n
Average private rents in Great Britain have slipped for the first time in five years, according to industry data, signalling a tentative pause in a prolonged period of steep increases. Hamptons\u2019 lettings index found that the average rent on a newly let property fell 0.2% year\u2011on\u2011year in July, the first annual decline since August 2020; the change is small but notable because it breaks a sustained upward trend that has added materially to household budgets. According to the original report, this national figure conceals very different local experiences. (Aneisha Beveridge, head of research at Hamptons, described the market as having \u201cpaused for breath\u201d in comments reported to The Guardian.)<\/p>\n
The fall on new lets is modest in absolute terms and sits alongside other measures showing rents remain elevated. Hamptons and related datasets put the average monthly rent for a new let at roughly \u00a31,370\u2013\u00a31,375, which remains about a third higher than in August 2020. At the same time, official figures show annual rent inflation has moderated rather than reversed, and renters continue to face substantially higher costs than five years ago.<\/p>\n
Regional variation is stark. Greater London recorded the steepest decline in newly let rents \u2014 about a 3% annual fall in July and a seventh consecutive month of declines \u2014 while parts of Wales, the north\u2011east and Yorkshire and the Humber also saw falls. By contrast, seven of the 11 regions monitored still recorded annual increases, with the East Midlands, West Midlands and the south\u2011west among the strongest. The differing patterns between the capital and many provincial areas help explain why a small national fall can coexist with rising rents in large parts of the country.<\/p>\n
Several structural and cyclical forces explain the easing. Industry analysts point to recent cuts in Bank of England interest rates over the past year that have reduced mortgage costs for some buy\u2011to\u2011let landlords, lessening their immediate need to pass on higher financing costs to tenants. Lower mortgage rates have also improved affordability for would\u2011be buyers, prompting some renters to return to owner\u2011occupier searches and easing pressure on demand in parts of the lettings market. At the same time, property platforms report a rising supply of available lets \u2014 Rightmove estimates the number of listings is roughly 15% higher than a year earlier \u2014 and a fall in tenant\u2011to\u2011listing competition, which has contributed to slower growth in asking rents.<\/p>\n
That loosening does not extend to everyone. Renewal rents \u2014 the sums charged when sitting tenants sign a new tenancy \u2014 continued to rise, up around 4.5% year\u2011on\u2011year in July, according to Hamptons, meaning many existing tenants are still seeing significant cost increases even as advertised new\u2011let rents cool. Hamptons\u2019 own analysis warns that persistent supply shortages and forthcoming regulation could re\u2011introduce upward pressure on rents over the medium term, limiting how far and how fast rents can fall.<\/p>\n
Official statistics provide a complementary perspective and slightly different measures. The Office for National Statistics\u2019 provisional bulletin for June 2025 records the average UK private rent at about \u00a31,344, with London remaining by far the most expensive area (average rents approximately \u00a32,252) and the North East showing one of the strongest rates of annual inflation. The ONS release stresses methodological caveats and regional breakdowns, underscoring that short\u2011term movements can look different depending on whether the focus is on newly let properties, asking rents, or renewals \u2014 and on the sample of agents and platforms used to compile indexes. Industry bodies such as Connells Group, which supplies a large volume of transaction and listing data to market trackers, underpin many of these indexes, reflecting the scale and commercial reach behind the figures.<\/p>\n
The ownership and investor landscape is also shifting. Hamptons reports that one in five buy\u2011to\u2011let companies set up in Britain so far this year has at least one non\u2011UK shareholder, up from around 13% in 2016, with investors from India, Nigeria, Poland and Ireland among the largest non\u2011UK groups. The company adds that Brexit has altered the composition of foreign ownership, with the share originating in the EU declining since 2016. Meanwhile, mortgage and housing\u2011cost analyses from lenders show housing remains the single biggest item of spending for many households: Barclays\u2019 research, summarised by industry press, estimates housing now typically accounts for close to a third of renters\u2019 take\u2011home pay, compared with just over a quarter for homeowners.<\/p>\n
Looking ahead, forecasters and portals have adjusted expectations but remain cautious. Hamptons has downgraded its rental growth forecast for 2025 significantly \u2014 reflecting the weaker momentum across new lets \u2014 while Rightmove reports record asking rents in some areas even as the pace of growth slows, listings increase and homes take longer to let. The emerging picture is one of an unsettled market: a modest national cooling that offers relief to some prospective tenants, but an environment in which renewal rents, regional imbalances, supply constraints and regulatory change could keep pressure on many households for the foreseeable future.<\/p>\n