Rents spiked in June, while voids dropped to 20 days. Year on year, rents are up 3.2%.
Rents spiked across the country in June, according to the latest Goodlord Rental Index.
As the market heads into its busiest season, month-on-month rents were up by over 3%, including a major spike in the South West. Rental price averages are now 3.2% higher year-on-year. Voids shortened in most regions, highlighting increased demand.
Month-on-month rents see biggest rise of 2025 to date
The average cost of rent in England rose by 3.2% during June, the highest month-on-month increase recorded by the Index this year. This takes the average rental price from £1,226 in May to £1,265 in June - a rise of £39 a month (or £468 a year).
At a regional level, however, the rise was not evenly distributed. Greater London, the North East, and the North West all saw rises of between 2-4%. But the South West recorded a major spike in prices with rents up by a huge 14%. Interestingly, the region saw a month-on-month rise of the same magnitude - 14% - during June last year.
As rents soared in some areas, two regions recorded a dip in average prices. The East Midlands and the West Midlands both saw rents reduce by slightly less than 2% compared to May’s prices.
Year-on-year rents rise, but annual pace continues to slow
Once again, the Index shows a significant year-on-year rise in rents - up by 3.2% from £1,225 in June 2024, to £1,265 in June 2025. All but one region recorded a year-on-year increase, with the most significant jump seen in Greater London, where prices are up by over 5% compared to the same time last year. This was followed by the South East, which recorded a year-on-year rise of over 4%.
However, there are signs that the pressure is easing and that the rate of year-on-year increases is starting to slow - June’s year-on-year rise of 3.2% (i.e. compared to the same time last year) marks the fourth consecutive month of decreasing year-on-year rent inflation. It compares to:
- 3.7% in May 2025 (compared to May 2024)
- 4.2% in April 2025 (compared to April 2024)
- 4.6% in March 2025 (compared to March 2024)
This indicates that, although month-on-month price rises continue to set new records, the pace of year-on-year rental inflation is beginning to assume a more moderate pattern overall.
Voids shorten in line with rising prices
As would be expected in a month of spiking rental averages, voids shortened across England. On average, void periods were reduced from 21 days in May to 20 days in June.
Last year, in June 2024, voids were even shorter - at 17 days. This further underscores the indication that the market may be moving towards a more sustainable footing over the long-term.
William Reeve, CEO of Goodlord, comments:
“The data is showing us two really interesting forces at play. On the one hand, we’re seeing rents hotting up as we enter summer - all signs point to there being a new rental price record set this season. However, on the other hand, the narrowing of the year-on-year rental rises shows us that some of the long-term heat is starting to seep out of the system.
This could be an early indication that supply and demand is beginning to recalibrate, although the upcoming passing of the Renters’ Rights Bill - which is unpopular with landlords - could potentially spark a buy-to-let sell off that tips the balance back in the other direction.”
