Rent falls for first time on record as young people stay living with mum and dad
Cost of renting falls for first time ever – but it’s not all good news
- UK rents on newly-agreed tenancies fell by 0.7 per cent in 2025, marking the first recorded annual decline since Hamptons began tracking data in 2011.
- The decline in rental costs originated in London, which saw a 2.7 per cent drop, before spreading to other regions including the South East and East Midlands by December.
- This rent stagnation was primarily driven by a surge in first-time buyers and broader economic weakness, rather than improved tenant affordability, with more young people staying in family homes.
- First-time buyers constituted a third of home purchases nationally in 2025, and up to 50 per cent in London, aided by lower interest rates enabling mortgage access.
- Despite the recent fall, Hamptons forecasts continued rental market growth in 2026, with the upcoming Renters’ Rights Act potentially leading landlords to increase advertised rents.