The UK rental market ended 2025 showing signs of short-term cooling in several regions, but with affordability pressures firmly embedded, according to the latest monthly assessment from Propertymark.
December’s figures reveal a familiar tension for renters: while headline annual trends suggest relative stability, sharp month-on-month movements point to an increasingly uneven market where affordability can ease or worsen rapidly depending on location and timing.
Year-on-year data shows only modest change across most regions, with the income required to rent remaining broadly stable. This, Propertymark says, underlines the long-term affordability challenge facing tenants, particularly as wages have failed to keep pace with housing costs over the past decade.
However, the most striking shifts are now happening over much shorter periods. Several regions recorded steep declines in average rents between November and December as seasonal demand cooled and renters became more price-sensitive. Yorkshire and Humberside saw average rents fall by 12.3% in a single month, while the North East experienced an even sharper drop of 22%.
Elsewhere, Wales, the West Midlands and the South West also recorded notable month-on-month falls, suggesting landlords in some areas are having to adjust pricing to secure tenants during quieter winter months.
By contrast, other parts of the country remain far more resilient. London, Scotland and sections of the East of England saw smaller declines and less volatility, reflecting continued demand pressures and chronic undersupply, even as affordability constraints bite.
In December 2025, the average rent in London stood at £2,125 per month, requiring a representative pre-tax salary of £63,750 to rent comfortably. While this marks a modest year-on-year reduction in the salary required, London remains by far the least affordable region for tenants.
At the other end of the spectrum, Northern Ireland recorded average rents of £945, but the typical salary required to secure a home rose sharply over the year, increasing by 8.5% to £28,350 — the largest annual jump of any region.
Across much of England and Wales, the salary required to rent has either edged up slightly or remained stubbornly high, reinforcing concerns that even small fluctuations in rents offer little real relief for households under pressure from energy bills, food costs and broader living expenses.
Megan Eighteen, President of ARLA Propertymark, said recent declines should not be misinterpreted as a fundamental shift in market conditions.
“While the private rented sector remains under long-term pressure, recent data shows that some areas have experienced notably sharp falls in rent levels over a very short period,” she said.
“These month-on-month declines suggest a cooling in parts of the market as seasonal demand eases and renters become more price-sensitive. However, this should not be mistaken for a broader reset in affordability.”
She added that supply constraints remain the defining issue for renters nationwide. “Even where rents have dipped, the overall cost of renting remains high relative to incomes, and supply shortages continue to limit choice for tenants. Without meaningful increases in the number of homes available to rent, any short-term softening is likely to be uneven and temporary.”
For policymakers and investors alike, the figures highlight a rental market that is no longer moving in a single direction. Instead, affordability pressures are playing out locally, with growing divergence between regions, and little evidence yet of a sustained easing for tenants.
