Newly agreed rents ended 2025 lower than the start of the year according to the Hamptons Letting Index, in a “subtle but significant turning point” for the PRS.
Across Great Britain, net lets dipped by 0.7% in 2025. In December the average monthly rent a tenant paid when moving home was £1,371, or £10 less than at the end of 2024.
This was the first time since the Hamptons Letting Index began in 2011 that this metric contracted over the year. For contrast, new lets were up just over 2% in 2024 and over 7% the year before.
Hamptons has highlighted that 2025’s contraction was not confined to a single month or region, but instead was broad-based.
London properties have recorded the steepest correction with newly agreed rents falling by 2.7% in 2025, or £63 per month. This has reduced them to 2023’s levels.
The Hamptons Letting Index also evaluated the amount of properties in the PRS and landlord buying activity.
In one of the “most striking shifts” of 2025, according to Hamptons, PRS stock ended the year 6% higher than in 2024.
As a result, the number of homes available to rent now sits only 8% below 2019 levels.
However, Hamptons has commented this has less to do with rising landlord purchases and more to do with softer tenant demand.
In 2025, investors bought just 10.9% of properties sold across Great Britain which is the lowest share on record. This coincided with the introduction of higher stamp duty on additional property purchases.
Looking ahead, Hamptons has identified May’s introduction of the Renters Rights Act as the next major turning point for the PRS.
“If some landlords find the new administrative framework burdensome, a minority may choose to scale back their portfolios, which would gradually reduce the number of homes available to rent,” commented Hamptons.
“What is more likely to change is the approach to pricing.
“Rising costs, a higher sense of risk mean landlords will place greater emphasis on keeping rents tightly aligned with market values.”
