Rents generally dropped, but some areas set regional records in August, while voids increased to 15 days. Year on year, rents are up 3%.
The rental market remained buoyant in August, according to the latest Goodlord Rental Index.
Despite a marginal month-on-month reduction in the average cost of rent across England, prices remain 2.9% higher year-on-year and, at £1,480 per property per month, represent the second-highest rental cost recorded since the Index began in 2019.
At a regional level, August saw new records broken, including the highest ever rental averages for the South East.
- August rents remain sky high
- Year-on-year prices increase, but pace continues to cool
- Voids record major dip in face of spiking demand
- Quote from William Reeve, Goodlord CEO
August rents remain sky high
After July’s record-breaking rents of £1,496, August averages dipped slightly - reducing by 1% across England. However, August’s rental average of £1,480 remains the second-highest rental average ever recorded by the Index, and certain regions saw rents surge even higher than July’s peak.
In the South East, rents rose by an eye-catching 11% - breaking the £1,600 barrier for the first time.
And in Greater London, prices were up by over 5.5% - hitting £2,322. This is the second-highest average ever recorded for the Greater London area.
The East Midlands also saw a rental surge, with prices up by over 4% compared to July.
It was a different picture elsewhere, with the North East, South West and West Midlands seeing reductions in the average cost of rent. The biggest reduction was recorded in the North West, which, after a huge rental spike in July, saw prices reduce by a dramatic 20% in August.
Year-on-year prices increase, but pace continues to cool
Overall, rents are now up by 2.9% year-on-year: rising from £1,438 across England on average during August 2024, to £1,480 over the last month. This represents an annual rental increase of £504 for tenants.
However, this 2.9% annual increase continues a trend seen throughout the year: that the pace of rental inflation is softening. In contrast to August’s 2.9% figure, March recorded year-on-year rent rises of 4.6%. This suggests that 2026 may bring a levelling out of rental costs, where monthly prices closely match the averages set throughout 2025.
The North West and Greater London saw the biggest year-on-year rental rises, with increases of 6.6% and 5.3% respectively.
Unusually, one region recorded a reduction in year-on-year rental costs - albeit a very small one. The North East saw a decline in average prices: dropping from £1,107 in August 2024 to £1,106 in August 2025.
Voids lengthen after July bonanza
Average void periods (the time a property sits empty between tenancies) lengthened slightly - rising from 12 days in July to 15 days in August. This new average of 15 days is the same as the void lengths recorded in August 2024, highlighting the ongoing supply and demand pressures on the market.
Goodlord CEO, William Reeve, adds:
It’s been another busy month for the market. Whilst it was unlikely that we would see July’s average rent record broken, the regional picture across Greater London, the South East and the East Midlands shows that we haven’t hit the rental price ceiling just yet. We are expecting another month of high rents in September, before things start cooling off as we move into the autumn.
“The next six months will be pivotal for the market; the pace of rent inflation is going down and there are indications that supply and demand pressures are slightly easing. Combine this with the disruption that the Renters’ Rights Bill will bring, and potential tax changes for landlords in the Budget in the autumn, and we’re in for a very interesting period for the sector.”
