For the first time since the height of the pandemic in 2020, average private rents in Great Britain have declined, offering a glimmer of relief to tenants after years of sharp increases. According to data from Hamptons agency, the average rent on a newly let property fell by 0.2% yoy in July 2025. While modest, this marks a key turning point for the market.
The shift comes on the heels of five interest rate cuts by the Bank of England over the past year, which have gradually eased mortgage pressures on landlords. Lower financing costs have dampened the need to pass on expenses to tenants, while also encouraging some renters to consider buying their own place. The real state platform Rightmove recently reported a 15% yoy increase in the number of rental listings, pointing to a rebalancing between supply and demand that has been missing since the pandemic.
Regionally, London led the decline, with rents down 3% in July—the steepest drop since May 2021 and the seventh consecutive month of decrease. Other areas following suit include Wales, north-east England, and Yorkshire and the Humber. But the national picture is fragmented: rents are still rising in seven of the regions, with the East Midlands up 3.4% and the West Midlands by 2.7%.
Despite the dip, housing remains significantly more expensive than it was five years ago. The average rent for a new let in July stood at £1,373—about £350, or 34%, higher than in August 2020. Meanwhile, old tenants aren’t seeing the same relief: renewed tenancy rents climbed 4.5% yoy, highlighting ongoing affordability challenges for those not looking to move.
Buyers and sellers
The latest housing sentiment also ties into broader dynamics in the property market. House prices rose by 3.9% in the year to May, according to the Office for National Statistics, fueled in part by interest rate cuts and relaxed lending rules from the UK’s financial regulator.
Foreign investment in the rental sector is also shifting. Hamptons noted that 20% of new investment companies or structures in 2025 were owned by non-UK nationals, up from 13% in 2016. Indian investors led this cohort, followed by Nigerian, Polish, Irish, and Italian nationals. Post-Brexit shifts are also visible: EU-based ownership of these companies has dropped from 65% in 2016 to 49% this year.
