Rental growth across Great Britain is falling. For the third month in a row, the cost of renting a new home is lower than it was at the same time last year. In the year to October 2025, the average monthly rent for a new tenancy fell by 0.5% to £1,399. This comes exactly one year after rents reached their peak of £1,406 pcm.
While London saw rental growth turn negative first, growth has now slowed right across the country. Even in northern regions where rents had been racing ahead until recently, the pace of growth is now in low single digits.
London has recorded the sharpest falls in rent. Rents have been falling in Inner London since the beginning of this year and now stand at £2,795, £135 pcm below their 2024 peak. Rents in Outer London have also been following this downward path since the early summer.
Move outside the capital, and the picture looks a little different. In the South East rents are unchanged compared to last year. In the South West and East, rental growth is running at 0.3% and 0.8% respectively. This means rents may fall in other regions across the South of England in the coming months.
One reason rents are starting to shift downwards is that fewer would-be tenants are looking for homes, and more homes are on the market. In October, there were 12% fewer tenants searching for a new place to live compared to last year, and 8% more properties to choose from.
This pattern has been most noticeable in the South of England. Regions including the South East, South West, and East of England have all seen fewer tenants looking for homes for the last three months in a row.
While rents for new tenancies have dipped slightly, the story is very different if you’re renewing an existing contract. Across Great Britain, the average rent for a contract renewal increased by 4.0% over the past year, reaching a new high of £1,310 per month.
October marks the second anniversary of rent increases for tenants renewing, outpacing the increases recorded by tenants moving into a new home. Over this period, newly agreed rent prices have risen 3.7% and renewals prices by 11.0%.
For renters, this could mean more choice and slightly better deals for those looking to move, especially in London. But potentially higher costs if you’re looking to stay.
