Rents DIDN'T rise at the start of this year for first time in almost a decade: What do tenants now pay in your area?
Monthly rents at the beginning of the year stagnated for the first time since 2017, fresh analysis reveals.
Rental asking prices across January to March flatlined when compared with the end of 2025 in welcome news for tenants, data from property portal Rightmove shows.
Landlords were advertising their properties for an average of £1,370 a month in the first quarter of the year – the exact same figure as in October to December last year.
Prices only grew by 1.6 per cent in the year to January to March, the lowest rise since 2018.
Tenants have been stung with sky-high rental prices in the past few years as demand far outstripped supply.
Stagnant: Rental prices flatline in a much-needed boost for tenants
Share this article
House prices spiralled out of control and affordability has become even more squeezed, which has pushed home ownership out of reach for many.
This means there was a deluge of renters hunting for a place to let, which in turn has pushed up monthly advertised prices.
However, house prices have stopped growing as quickly and the supply and demand of rental homes has now begun to balance itself, which has stifled growth in monthly rental payments.
A quarter of landlords have even had to reduce rents in order to secure a tenant.
Colleen Babcock, of Rightmove, says: ‘With more homes available to rent and less competition between tenants, landlords are needing to position rents correctly for the current market to secure a tenant.
“As market conditions rebalance, homes are taking longer to let. The market is more price sensitive, with landlords needing to be realistic from the outset to secure a tenant and reduce the risk of void periods.
'Around 26 per cent of rental listings are now reduced in price while advertised, the highest proportion recorded since Rightmove began tracking this metric in 2012.’
New rules could see rents rise again
But this much-needed respite for renters may be short-lived as prices could once again soar.
It is expected that nearly a quarter of a million rental properties will disappear from the private rental sector in England by the end of this year as landlords are hit with a barrage of new rules.
There are expected to be 220,000 fewer homes to rent by the end of 2026, according to new research by mortgage lender Pepper Money.
Labour's Renters Rights Act could prompt some property investors to throw in the towel.
Coupled with meagre yields – just 6.5 per cent across Britain, excluding London says Rightmove – and a punishing two per cent hike on property income tax, landlords are headed for the exit.
It means about 5 per cent of rented homes are set to disappear, according to pepper Money. This mass exodus will in turn cause higher rents for tenants as demand outweighs supply once more.
Adam Jennings, head of residential at estate agency Chestertons, there has been uncertainty among landlords ahead of the 1 May legislation changes.
He adds: ‘However, the strength of demand we saw in late March has provided reassurance, with many landlords continuing to see competitive levels of interest and strong rental values.’
Plus, mortgage rates were trickling downwards last year – but they have once again ticked upwards due to the US-Iran war.
The Bank of England was expected to trim its interest rate this year but now markets are expecting a hike.
This has been priced into fixed-rate deals by lenders, and it means buy-to-let investors fixing at these inflated rates may pass on these costs to consumers.
Babcock adds: ‘It’s still early days, but the most immediate shift due to the war in Iran has been some significant increases to borrowing costs for landlords, which may filter through to the market at a later stage.’
Jeremy Leaf, a north London estate agent, says: 'Rental market activity has been in transition for a while now with issues exacerbated – but not necessarily caused – by war in the Middle East. Tenants were becoming increasingly concerned about the rising cost of living beforehand but are even more so now.
'Meanwhile, the choice of property available is dwindling as landlords continue to leave the sector in anticipation of the imminent Renters’ Rights Act and taxation changes. There’s been a reluctance too for new investors to take their place partly due to uncertainty about the economy.
'The net result is a market ‘on hold’ with fewer transactions and rents not moving much one way or the other – probably until some stability returns.'
In a smattering of rural spots, however, monthly rents have soared in the past year – far above the 1.6 per cent countrywide rise.
Take Iver, a leafy parish in Buckinghamshire, for example. In March, landlords were asking for £2,893 a month in rent – up 21.8 per cent in a year.
Godalming in Surrey has also seen a chunky 19.8 per cent rise to £2,341 while lets in Truro in Cornwall climbed from £1,251 to £1,494.
SAVE MONEY, MAKE MONEY
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence. Terms and conditions apply on all offers.
