“UK Rents Are Falling.” Just Another Headline
Why Investors Must Read Between the Lines
“Rents are falling.”
That headline has appeared more than once in recent weeks — and while it’s technically true, it’s also misleading unless you understand which rents, where, and according to whom.
Right now, three major rental datasets are telling three different stories:
Rightmove shows advertised rents easing only slightly
Hamptons (using Connells data) shows newly agreed rents falling
ONS shows average rents across all tenants still rising
Rather than contradicting each other, these datasets together reveal a rental market that is cooling, recalibrating, and becoming far more price-sensitive.
For investors, this distinction matters more than ever.
Rightmove: Advertised Rents Pause — A Rare Event
Let’s start at the top of the funnel: asking rents.
According to Rightmove’s rental tracker:
Average advertised rents outside London fell quarter-on-quarter in late 2025 — only the second quarterly fall in five years
Typical advertised rents sat at around £1,370 per month
On an annual basis, advertised rents were still around 2% higher than a year earlier
Rightmove also highlights a subtle but important behavioural shift:
The average rental listing now attracts around 10 enquiries
This compares with 14 enquiries a year earlier, and 6 before the pandemic
In other words, competition remains elevated — but it is no longer extreme.
What this tells us:
Landlords are still ‘aiming high’, but tenants now have more choice and more negotiating power than at any point since 2020.
Hamptons & Connells: Where New Deals Are Actually Being Done
Now let’s move from intention to reality.
According to the Hamptons Lettings Index, which tracks new tenancies agreed across the Connells estate agency network, rents are doing something they haven’t done in over a decade.
For the first full calendar year since the index began:
Newly agreed rents fell nationally by around 0.7%
The typical new tenant paid around £10 per month less than a year earlier for a comparable property
This is not a collapse — but it is a turning point.
The regional story is crucial:
London saw the sharpest adjustment, with new rents down around 2–3%
Some parts of the South East, East Midlands, Yorkshire & Humber and Wales also recorded declines
However, according to Zoopla’s latest rental data, certain more affordable regions and high-demand commuter areas continue to see localised rent growth in some areas of 8%+, reflecting continued demand where affordability remains strong.
Hamptons also reports that:
Renewal rents (where tenants stay put) rose by around 3%
The gap between renewal increases and new-let pricing is now the smallest since 2021
What this tells us:
Landlords are prioritising void reduction and tenant retention over headline rent growth, but certain localised hotspots continue to see above-average increases, even as the national trend cools.
ONS: The Big Picture Still Shows Growth — But It’s Slowing Fast
The Office for National Statistics (ONS) measures average rents paid across all private tenancies, including millions of existing contracts.
According to the latest ONS data:
Average UK private rents rose by around 4% year-on-year
This is the slowest rate of rental inflation since mid-2022
Growth has more than halved from the peaks seen during 2023
Regional ONS data adds another layer:
London recorded the weakest rent inflation, at just over 2%
North East England recorded the strongest, close to 8%
Wales and Northern Ireland also showed stronger-than-average growth
Scotland remained positive but more subdued
What this tells us:
Existing tenants are still absorbing earlier rent increases, but the pace is clearly slowing — and new-let softness will feed into the ONS data over time.
London vs Midlands vs North of England: Three Very Different Rental Markets
National averages hide what is now a clear three-speed rental market, with some localised hotspots outperforming.
London
New-let rents have adjusted the most, with 2–3% annual falls
ONS data shows the weakest rental inflation nationally, just over 2%
Absolute rent levels remain the highest in the UK, pushing against affordability ceilings
Landlords are increasingly focused on retaining tenants rather than resetting rents
Investor reality:
London is now a low-growth, high-stability market, but select high-demand areas can still outperform the average.
The Midlands
Newly agreed rents are broadly flat, with modest positive growth in some markets
ONS data shows mid-single-digit rental growth on average
Zoopla data confirms that certain affordable and commuter areas still saw growth in some localised areas of 8%+
Strong employment hubs continue to support demand
Investor reality:
The Midlands offers income resilience with pockets of stronger growth, ideal for selective investment.
The North of England
ONS data shows the strongest rental inflation nationally
New-let rents have held up better than in the South
Localised areas continue to see growth above 8%, reflecting strong demand where rents remain affordable
Overall, lower absolute rents preserve affordability and demand
Investor reality:
The North remains the most robust rental market, especially for yield-focused investors, but careful market selection is key to capturing the strongest returns.
Why None of This Is a Contradiction
This is the key point investors must understand.
Rightmove – measures advertised rents; shows landlord expectations.
Hamptons / Connells – measures agreed new rents; shows market‑clearing prices.
ONS – measures all rents paid; shows system‑wide inflation.
When affordability tightens:
Asking rents pause first
Agreed rents soften next
Average rents slow last
That is exactly what the UK rental market is doing now.
What’s Driving the Shift?
Several forces are converging:
Affordability ceilings, particularly in London
Changing tenant behaviour, with longer stays and fewer forced moves
Modest improvements in supply, easing pressure at the margin
More professional landlord behaviour, favouring stability over aggressive hikes
This is not a demand problem.
It’s a pricing problem.
What This Means for Buy-to-Let Investors in 2026
The era of “name your rent” is over — but the rental market remains structurally strong.
Smarter investor behaviour now looks like:
Pricing based on achieved rents, not asking rents
Stress-testing deals assuming flat rents, not growth
Focusing on affordable local markets, not headline hotspots
Protecting income through low voids and tenant retention
Rental returns are becoming earned, not automatic.