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17/12/25 3:30 pm
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Just 10.9% of properties in Great Britain were bought by landlords in 2025, down from 12% in 2024, while investors also retreated from Northern markets.
Hamptons says this is the lowest share since records began in 2012 and the first time the figure has fallen below 11% over a full calendar year - the first in which landlords paid the higher 5% stamp duty surcharge.
Its Monthly Lettings Index for December 2025 reveals that the North East remained the most investor-heavy region, where landlords accounted for 29% of purchases. While Northern England still leads for buy-to-let purchases, the South East, East of England and North East were the only three regions of England to record a year-on-year increase in the share of homes bought by investors.
Aneisha Beveridge, head of research at Hamptons, says if landlords start to find new rules in the Renters’ Rights Act lacking, it’s likely to slowly squeeze rental homes out of the market. “From a supply perspective, the lack of appetite means the share of homes bought by investors could fall below 2025’s already low levels,” she adds.
Hamptons reports that newly agreed rents dipped by 0.7% across Great Britain in 2025 - the first time rents fell over a full calendar year since its records began in 2011, meaning that the average tenant moving into a property paid £1,371 per month, £10 less than last year for the same home.
In 2025, the average cost of a contract renewal rose 3.3% annually to £1,310 pcm. This left a £61 gap between new lets and renewals - the smallest differential since July 2021 and down from a peak of £170 per month in October 2023.
The upcoming ban on offers above the asking rent means that agreed rents and advertised rents may start to rise at different rates, explains Beveridge. “The block on landlords accepting a price above what they asked for is likely to push up advertised rents, with more tenants making offers below the higher asking price instead.”
Stock levels ended the year 6% higher than in December 2024, but perhaps more strikingly, the number of homes available to rent was only 8% below 2019 levels.
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