Inflation outstripped rental growth in the past nine months, Hamptons analysis shows.<\/p>\n
In August 2025, newly agreed rents across Great Britain fell by 0.4% year-on-year, a figure equivalent to \u00a36 per month.<\/p>\n
Despite the recent slowdown, rents have risen faster than inflation \u2013 as measured by the Consumer Price Index (CPI) over both five and 10 years \u2013 up 31.0% vs 24.9% CPI over five years, and 41.0% vs 33.7% CPI over 10.<\/p>\n
Aneisha Beveridge, head of research at Hamptons, said: \u201cFor most of the last five years, rapidly rising rents were a key contributor to the UK\u2019s high inflation story.\u00a0But after several years of rapid rental growth, the tide is finally turning.<\/p>\n
\u201cFor the ninth month in a row, rents have risen more slowly than inflation\u2014offering tenants a rare moment of financial respite.\u00a0 While the monthly savings may seem modest, they mark a significant shift in the rental market\u2019s role in driving inflation.<\/p>\n
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\u201cOver the longer term, rents have consistently outpaced inflation, which means tenants today are paying more than they would have if rents had simply tracked CPI.\u00a0 For the most part, this has mirrored the rising cost pressures facing landlords.\u00a0 But this recent slowdown suggests the market is recalibrating.\u00a0 With affordability stretched and demand softening, landlords are having to adjust to attract tenants.\u201d<\/p>\n
In August, the number of unlet homes on the market was 8% higher than the same time last year, while tenant demand softened slightly, with 4% fewer renters beginning their search.<\/p>\n
Nathan Emerson, CEO of Propertymark, said:\u00a0\u201cA cooling in rental prices isn\u2019t necessarily as detrimental for landlords, given that mortgage products have improved, providing those with buy-to-let tracker mortgages an easing in financial pressure, which can mitigate the impact or reduce rent rises.<\/p>\n
\u201cThe stabilisation of rental levels will equally be welcomed by many tenants who have been struggling against the rise in inflation over the past few years, which exceeded what people have been historically used to. Not only have the increases in the cost of living pushed rent prices up, but they have also, in part, been caused by an imbalance of supply and demand.\u201d<\/p>\n
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Inflation outstripped rental growth in the past nine months, Hamptons analysis shows. In August 2025, newly agreed rents across Great Britain fell by 0.4% year-on-year, a figure equivalent to \u00a36 per month. Despite the recent slowdown, rents have risen faster than inflation \u2013 as measured by the Consumer Price Index (CPI) over both five and […]<\/p>\n","protected":false},"author":1,"featured_media":3567,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-3566","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-second-home"],"yoast_head":"\n