The cost of renting rose by 2% in December 2025, cooling from highs of 4.6% recorded in January and March 2025.
Average rents across England were £1,214 per property, per month in December 2025, Goodlord’s Rental Index shows.
William Reeve, chief executive at Goodlord, said: “We’d expect to see some month-on-month price deflation during December – it’s typically one of the slowest times of year for the market – but what’s far more interesting is what’s happening across the year-on-year figures.
“Despite ending the year up 2%, December’s annual inflation figures are far lower than we’ve seen in previous years and lower still compared to 2025’s inflationary peak of 4.6%.
“Whilst it’s too soon to tell for sure whether this is a seasonal blip or the beginning of a cooler run of inflationary pressures, the wider signs indicate that 2026 will be another intense year for the market.
“The Renters’ Rights Act is coming into force in May which could squeeze supply and demand even further if landlords decide to exit the market.
“The combination of the predicted summer surge plus the shift in the legislative landscape means we could be on for another record breaking year.”
The biggest shift in month-on-month rental costs was seen in the South West, where prices dropped by 4% during December.
The only region to record an increase in rental costs was the North West, where a very small increase of 0.3% was tracked.