Rents in December 2025 rose 2% year-on-year, according to the Goodlord Rental Index, marking a slowdown compared with previous months. The increase was lower than December 2024 and well below the 4.6% recorded in January and March 2025.
Month-on-month figures show that average rents fell 2.5% from November, reaching their lowest level since March, reflecting weaker demand in what is traditionally one of the rental market’s quietest months.
Average rents across England were £1,214 per property, per month in December 2025. This is a year-on-year rental rise of 2.4% when compared to December 2024, when the cost of a property was £1,185 on average.
Despite this rise, the 2% annual increase was a more modest climb than recorded at other times during 2025. In both January and March 2025, annual rental inflation hit 4.6%. Likewise, this was also a noticeable reduction compared to figures recorded last December; in December 2024, year-on-year prices were up by 3.3% compared to December 2023.
This cooling of annual inflation may be seasonal, as recent figures show that year-on-year rental price inflation had been picking up pace since September after slowing during the summer months. This indicates that 2026 is likely to bring another spate of rental rises across England, despite December’s frostier landscape.
In December, rental price averages dropped to their lowest level in 9 months – hitting £1,214 across England. This compares to November’s average of £1,245 – a decrease of £31 per month, or £372 per year.
Rents haven’t been this low since March 2025, when they averaged £1,213 per property, per month.
The biggest shift in month-on-month rental costs was seen in the South West, where prices dropped by 4% during December. The only region to record an increase in rental costs was the North West, where a very small increase of 0.3% was tracked.
2025’s rental price average peaked in July at £1,496. This means rents ended the year 19% lower than the annual peak. In real terms, this shift in average prices meant tenants taking out a new lease in December were spending £3,384 less per year on rent compared to their July counterparts.
Void periods remained broadly steady during December, ending the month with an average void length of 23 days. This is one day shorter than November’s average of 24.
It was a mixed picture across the regions – with voids lengthening in the South East and North West, holding firm in Greater London, and shortening in the East Midlands, North East, South West and West Midlands.
Year-on-year, voids in December 2025 were longer compared to the same time the previous year. In December 2024, voids were recorded at 21 days on average.
William Reeve, CEO at Goodlord, said: “We’d expect to see some month-on-month price deflation during December – it’s typically one of the slowest times of year for the market – but what’s far more interesting is what’s happening across the year-on-year figures. Despite ending the year up 2%, December’s annual inflation figures are far lower than we’ve seen in previous years and lower still compared to 2025’s inflationary peak of 4.6%.
“Whilst it’s too soon to tell for sure whether this is a seasonal blip or the beginning of a cooler run of inflationary pressures, the wider signs indicate that 2026 will be another intense year for the market. The Renters’ Rights Act is coming into force in May which could squeeze supply and demand even further if landlords decide to exit the market. The combination of the predicted summer surge plus the shift in the legislative landscape means we could be on for another record breaking year.”
Read the orginal article: https://propertyindustryeye.com/rents-rose-in-2025-but-failed-to-keep-up-with-inflation/?utm_source=rss&utm_medium=rss&utm_campaign=rents-rose-in-2025-but-failed-to-keep-up-with-inflation
