London recorded the largest falls in newly agreed rents, down 2.7%

Rents in many parts of the UK, especially in London, dropped during last year for the first time since Hamptons started recording rent levels.

The agency says rents in the Capital returned to 2023 costs, as five of 11 regions saw rents decline in 2025.

London recorded the largest falls in newly agreed rents, down 2.7%.

Rents dropped by 0.7% across Great Britain, which was the first time rents declined over a full calendar year since Hamptons’ records began in 2011.

The figures mean the average tenant moving into a property paid £1,371 per month, £10 less than last year.

The South East (-1.0%), East Midlands (-0.2%), Yorkshire & Humber (-1.4%) and Wales (-0.8%) all saw rents drop.

Three further regions – East of England (0.5%), South West (0.7%) and Scotland (0.5%) – saw growth below 1%.

Meanwhile, Hamptons also says just 10.9% of purchases in 2025 were by a landlord, the first full year in which landlords paid the higher 5% Stamp Duty surcharge.

Landlords accounted for 29% of purchases in the North East, the highest figure by a significant margin in any region.  The East Midlands (15.1%) and West Midlands (15%) followed.

Aneisha Beveridge, Head of Research at Hamptons, says: On paper, 2025 looked like a good year for tenants. Rents on new lets ended 2025 lower than they started, and tenants had more choice than before.

However, falling rents were driven more by strong first-time buyer numbers and wider economic weakness than by improved tenant affordability, she says.

She adds: Fewer tenants are taking their first step into the rental market, with many staying at home longer and being reluctant to commit to the cost of renting a place of their own.