The proportion of properties purchased by landlords fell in 2025, reflecting how it’s becoming more of a difficult sector for investors, Hamptons analysis shows.

Just 10.9% of properties in Great Britain were bought by landlords, down from 12.0% in 2024 and well below the 15.8% recorded in 2015, before the 3% stamp duty surcharge was first introduced in 2016.

Rents experience annual fall

The cost of renting fell by 0.7% across Great Britain in 2025, the first time this has happened over the full calendar year since records began in 2011.

Hamptons data shows that London pulled the average down, as they dropped by 2.7% in the capital.

There were also minor falls in the South East (-1.0%), the East Midlands (-0.2%), Yorkshire & Humber (-1.4%) and in Wales (-0.8%).

The East of England (0.5%), South West (0.7%) and Scotland (0.5%) saw modest rental growth in 2025.

Aneisha Beveridge, head of research at Hamptons, said: “On paper, 2025 looked like a good year for tenants. Rents on new lets ended 2025 lower than they started, and tenants had more choice than before.

“However, falling rents were driven more by strong first-time buyer numbers and wider economic weakness than by improved tenant affordability.

“Fewer tenants are taking their first step into the rental market, with many staying at home longer and being reluctant to commit to the cost of renting a place of their own.”

Stock levels ended the year 6% higher than in December 2024, which Hamptons said reflects weaker demand from renters rather than a jump in new landlord purchases.

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