Rents Are Falling in These 10 Major UK Cities: The Best Time to Move in 2026

Rent prices have felt like a runaway escalator lately. Up every month. Up again at renewal. Up again when you try to move.

If you’re a tenant, landlord, buyer, or investor, I get the stress. UK rules change fast. Costs hide in the small print. Timelines slip when one link in the chain drags.

Here’s the calm part. Newly agreed rents are finally dipping. Across Great Britain, new lets fell 0.7% over 2025 and hit an average monthly rent of £1,371 by December. London led the drop, down 2.7% for new lets, or about £63 per month.

This guide shows where rents falling is real, where it’s mixed, and how to act without guessing.

UK Rental Market Overview: A Historic Rent Decline in 2025

Newly agreed rents (new lets) ended 2025 lower than where they started. Hamptons says it’s the first time since its index began in 2011 that new lets finished a year down.

That matters because the rental market has been tight for years. Rental inflation stayed positive for a long stretch, even when wages didn’t keep up.

The headline numbers

• New lets: £1,371 average rent across Great Britain by December, down 0.7% YoY.
• London new lets: £2,294 average rent, down 2.7% YoY.

The key twist: renewals did not fall

Renewal rents rose 3.3% across Great Britain, to £1,310. The gap between new lets and renewals narrowed to £61.

So yes, rents falling is real. But it’s strongest when you move, not when you stay.

What caused rents to finally fall?

New lets fell because demand cooled and supply improved. More first-time buyers moved out of renting as mortgage affordability got a bit better. Some renters stayed at home longer to avoid the cost of renting alone. Stock levels rose, which eased market pressure.

Hamptons also points to a supply rebuild. Rental stock ended 2025 6% higher than December 2024, and homes available were only 8% below 2019 levels.

The 10 Major Cities Where Rent Prices Are Coming Down or Cooling Fastest

Before the table, one quick rule.

Different trackers measure different parts of the rental market. Some focus on new lets, some on advertised rents, and some on room rentals.

So I’m using the best “rent direction” signal available for each city, and I’m telling you which one it is.

City comparison table

Notes on sources: London new lets and the national averages are from Hamptons reporting as carried in Mortgage Solutions, with the regional table included. City-level “earlier drop” references come from Zoopla’s city reporting on rent falls and London borough changes. Room rents and “mixed signals” cities come from SpareRoom’s rental index updates.

London: The Biggest Rent Decline

London is the headline. It pulled the rental market down first.

New lets in Greater London averaged £2,294 in December, down 2.7% YoY. Inner London dropped 3.7%, outer London fell 1.6%.

If you’re hunting in East London, keep an eye on borough swings too. Zoopla flagged drops across Tower Hamlets, Newham, and Greenwich in its London breakdown during earlier cooling phases.

Where Are Rents Still Rising?

If you only read national averages, you’ll miss the pockets where rent prices still climb.

Room rentals show this clearly.

SpareRoom’s data shows some places still pushing up room rents, even while other areas cool. Liverpool is a good example of mixed signals, with room rents up 5.5% YoY in the period they reported.

So don’t assume your local letting market follows the national curve.

New Lets vs Renewals: A Tale of Two Markets

This is the part that trips people up.

New lets fell. Renewals rose.

Across Great Britain, Hamptons data shows new lets at £1,371 (-0.7%), while renewals hit £1,310 (+3.3%).

That gap matters for your plan.

If you’re renewing, you’re negotiating from a weaker spot than someone moving. But you still have options, especially if your landlord fears a void period.

Renters’ Rights Act: What Changes from 1 May 2026

This is where rules and rent prices collide.

The government’s roadmap and major housing groups say the main reforms start from 1 May 2026, with changes phased in.

Here are the changes most people feel first

• Section 21 ends for new rules starting 1 May 2026, so “no-fault” evictions stop under the new system.
• Tenancies move toward a single periodic system, rather than rolling fixed terms as the norm.
• A ban on rental bidding wars is part of the policy package, aimed at stopping offers above asking rent.

Why this links to rents falling

Hamptons warned that a bidding ban can push landlords to set higher asking rents, while agreed rents may move differently at first.

So watch the gap between advertised rents and newly agreed rents in 2026.

Landlord Purchases Hit a Record Low: What That Means for Supply

Landlords don’t drive the market like they did.

Hamptons says landlords made up 10.9% of purchases in 2025, the lowest share on record in its data set.

This matters because supply sets rent prices.

Short-term, higher stock levels can mean more choice for tenants. Hamptons reported stock up 6% YoY and availability only 8% below 2019.

Medium-term, if landlord exits speed up, supply can tighten again.

That’s why 2026 could feel like two halves: softer early months, then more pressure if stock slips.

Supply and Demand: Why the Rental Market Is Cooling

Stock levels rose. Demand cooled.

That combination changes the whole feel of a viewing.

In the peak frenzy, renters competed hard for the same rental property. Now, the pressure has eased in some places, especially where affordability hit a wall.

If you’re moving, this is your window.

If you’re renewing, you still benefit when landlords see more homes available down the street.

Affordability: Can Renters Finally Breathe?

Rents falling helps, but it doesn’t erase the last few years.

The bigger story is affordability pressure. When rent prices push too far past household income, people don’t just “pay more”. They change plans.

They flatshare longer. They move home. They delay moving. They buy earlier if mortgage rates allow it.

Quick affordability check

Here’s the clean maths many lenders and agents use as a rough guide.

Annual income needed (simple check) = (monthly rent × 12) ÷ 0.30

So for the Great Britain average rent of £1,371, the rough “30% rule” income is about £54,840.
For London’s £2,294, it’s about £91,760.

That’s why London hit an affordability ceiling first.

Best Time to Move: A Simple Timing Plan for Tenants

You don’t need luck. You need timing plus paperwork.

Here’s the timing logic that fits 2026.

• Track new lets, not just asking prices. New lets show what landlords accept.
• Move before the big seasonal rush if you can. Spring and late summer raise competition.
• If you’re in London, watch inner vs outer splits. The numbers differ.

How to negotiate when rents are falling

Do it like a calm shopper, not like a desperate bidder.

• Bring three comparable listings in the same area.
• Point to stock levels and days on market if the listing sits.
• Offer a longer fixed term only if the price drops.
• Ask for small wins too: repaint, deep clean, or a pet clause.
• Get it in writing before you pay anything.

Room Rentals and HMOs: A Different Pattern

Room rents don’t always follow whole-property rent drops.

SpareRoom shows room prices can rise fast in some towns, while big-city room rents cool in others.

So if you’re in an HMO or flatshare, check room rental data, not just whole-home averages.

It’s the same rental market, but a different lane.

Expert Predictions: What to Expect in 2026

I’ll keep this grounded.

Hamptons expects some regions with growth under 1% to tip into declines in early 2026 if demand stays soft.

And the Renters’ Rights Act changes from 1 May 2026 can change how landlords price listings and how tenants make offers.

So the smart move is simple.

Use the latest local data each month. Don’t rely on last year’s vibe.

First-Time Buyers vs Renters: When Renting Starts to Lose

When first-time buyers leave renting, demand drops.

Hamptons links part of the cooling to stronger first-time buyer numbers and softer renter demand.

If you’re weighing rent vs buy, focus on three numbers.

• Deposit requirements.
• Mortgage affordability.
• Monthly payments vs rent.

If your monthly rent is close to a mortgage payment, the rent vs buy decision gets real fast.

Regional Deep Dive: What’s Happening Across the UK

London stands out, but it’s not alone.

Hamptons reported new let declines by December in the South East (-1.0%), East Midlands (-0.2%), Yorkshire & Humber (-1.4%), and Wales (-0.8%).

Other areas stayed positive but slow.

East of England, South West, and Scotland came in under 1% growth in the same data.

That’s the north vs south divide in reverse, at least for now.

How to Find the Best Rental Deals Right Now

The boring prep wins the deal.

• Use more than one platform (Rightmove, Zoopla, SpareRoom, OpenRent).
• Set alerts for your borough or postcode.
• Get references ready.
• Have your deposit and ID sorted for right to rent checks.
• Ask clear questions at viewings: bills, EPC, mould history, repairs, and notice periods.

And don’t skip the legal basics.

Make sure your deposit goes into a deposit protection scheme. Read the tenancy agreement. Keep screenshots of the listing.

What Falling Rents Mean for You

Rents falling won’t fix everything. But it changes the mood.

New lets have softened across Great Britain, and London has pulled back the most.

If you’re moving, you’ve got more room to bargain in parts of the market. If you’re renewing, you still have a case, especially when stock is higher.

Use the latest data. Check your area, not just headlines. And walk into every negotiation with proof, not hope.

FAQs: Everything You Need to Know

Why are rents falling in the UK?

Rents are falling for new lets because demand cooled while supply improved. More first-time buyers moved out of renting, and some renters delayed moving out to avoid high rental costs. Stock levels rose, which reduced market pressure and eased rental inflation in some regions.

Which UK cities have falling rents in 2026?

London is the clearest case, with new lets down 2.7% over 2025. Other places show cooling too, but the signal depends on the rent type, like whole properties versus room rentals. Always compare local listings with new lets where possible, not just asking rent.

Is this the first time rents have fallen in the UK?

For newly agreed rents, Hamptons says 2025 is the first year since its index began in 2011 that new lets ended lower than they started. That makes it a rare moment after years of rental growth and strong rental inflation in many areas.

Will rents continue to fall in 2026?

Some regions already sit close to zero growth, and Hamptons expects a few may tip into declines early in 2026 if demand stays soft. Rule changes from 1 May 2026 can also affect asking rents and agreed rents in different ways, so trends may split.

How much has rent fallen in London?

Newly agreed rents in Greater London fell 2.7% over 2025, which Hamptons data equates to about £63 less per month. Inner London fell 3.7% and outer London slipped 1.6%, taking rent prices back to around mid-2023 levels for new lets.

Are landlords selling their properties?

Landlord buying hit a record low in 2025, with landlords making up 10.9% of purchases in Hamptons data. Lower investor activity can link to future supply risks, but in the short term, stock levels still rose and eased rental market pressure in some areas.

Should I move now or wait for rents to fall further?

If your area shows falling rents on new lets and you’re ready with documents, moving sooner can help you lock a lower rent before seasonal demand rises. If your area still has rising rents, waiting rarely helps. Use fresh local data and compare similar properties weekly.

What is the average rent in the UK now?

By December 2025, newly agreed rents averaged £1,371 per month across Great Britain in Hamptons data. In Greater London, the average rent for new lets was £2,294. These are new-let figures, which can differ from renewal rents and asking prices.

Why are rents still rising in some cities?

Some cities still have strong demand and room rental pressure, even while the wider rental market cools. SpareRoom data shows room rents rising sharply in some places and still increasing in Liverpool, for example. Local supply, wages, and tenant competition create very different outcomes by area.

What is the Renters’ Rights Act and how will it affect rents?

The Renters’ Rights Act reforms England’s private rented sector, with main changes starting from 1 May 2026. These include ending Section 21 “no-fault” evictions and shifting tenancy rules, with measures aimed at stopping rental bidding wars. It may change asking rents and agreed rents differently at first.