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The price of renting rose by 2% in December 2025, cooling from highs of 4.6% recorded in January and March 2025.
Common rents throughout England have been £1,214 per property, per 30 days in December 2025, Goodlord’s Rental Index exhibits.
William Reeve, chief govt at Goodlord, stated: “We’d count on to see some month-on-month worth deflation throughout December – it’s sometimes one of many slowest instances of 12 months for the market – however what’s much more fascinating is what’s occurring throughout the year-on-year figures.
“Regardless of ending the 12 months up 2%, December’s annual inflation figures are far decrease than we’ve seen in earlier years and decrease nonetheless in comparison with 2025’s inflationary peak of 4.6%.
“While it’s too quickly to inform for certain whether or not this can be a seasonal blip or the start of a cooler run of inflationary pressures, the broader indicators point out that 2026 can be one other intense 12 months for the market.
“The Renters’ Rights Act is coming into power in Might which might squeeze provide and demand even additional if landlords determine to exit the market.
“The mixture of the anticipated summer time surge plus the shift within the legislative panorama means we may very well be on for one more report breaking 12 months.”
The most important shift in month-on-month rental prices was seen within the South West, the place costs dropped by 4% throughout December.
The one area to report a rise in rental prices was the North West, the place a really small improve of 0.3% was tracked.
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