Rents in England dipped again in December, the fifth consecutive month of rental cost reductions. The decline follows a record-breaking summer of rises.
Overall, December rents were down by nearly 2% month-on-month, meaning rents last month were a huge 19% lower than the averages recorded in July 2024.
However, rents for December are still up by over 3% year-on-year, highlighting an ongoing rise in prices albeit a significant reduction in the pace of these increases compared to earlier in 2024. With December traditionally one of the quietest months for new tenancies, there was no month-on-month change in void periods.
- December rents end 2024 up 3% year-on-year
- Rents dip for fifth consecutive month
- December rents vastly reduced compared to summer 2024
- Voids hold steady during December
- Goodlord's CEO's verdict
December rents end 2024 up by 3% year-on-year
Rents in December 2024 across England were £1,185 on average. This compares with an average of £1,147 recorded in December 2023 - meaning year-on-year prices are now up by 3.3% compared to 2023.
The biggest year-on-year change was recorded in the South East, which ended the year with rents up by 5.7% compared to December 2023. The smallest change was seen in the North East, with rents up by just over 2% year-on-year.
December’s figure of 3.3% marks the smallest year-on-year rise recorded for rent in 2024. In contrast, rents in August were tracking 10% higher year-on-year compared to August 2023.
Rents dip for fifth consecutive month
When looking at the month-on-month changes, rents in December were down for the fifth month in a row. Average rents for new tenancies in England decreased from £1,205 in November to £1,185 in December - a reduction of 1.7%.
December rents vastly reduced compared to summer 2024
Across 2024, the annual high for rents was recorded in July, when average prices rose to £1,470 per property, per month. That means December 2024 rental averages were a huge 19% lower than July 2024 rents.
The lowest rents in 2024 were recorded in January, when prices were £1,154 on average.
Voids hold steady during December
There was no month-on-month change to void periods during December, remaining at 21 days across England on average. This is up slightly from the void figures recorded last year, in December 2023, when averages were slightly shorter at 20 days.
This contrasts to the figures recorded in July 2024, the month which took the prize for the highest rental costs of the year. During July, voids stood at just 11 days - reflecting the intensity of demand during this peak period for lettings.
The biggest reduction in voids during December was recorded in the West Midlands, where averages shortened from 24 days in November to 18 days in December. The North East also saw voids shorten (down from 23 days to 22) and there was no change on Greater London (18 days). Voids lengthened in the East Midlands, North West, South East and South West.
Goodlord's CEO, William Reeve, comments
“After the fireworks of the summer, the rental market ended the year in a far more subdued fashion. We’ve now seen five months of decreasing prices and year-on-year rental averages are currently tracking far lower than figures seen during 2024 as a whole, although this should be viewed in the context of the record breaking highs set during July and August.
“I also believe this could be the calm before the storm and that rents will see another major spike in 2025. With the introduction of the Renters’ Rights Bill, bidding wars will be outlawed, meaning asking prices are likely to be set that bit higher. Likewise, the new compliance requirements landlords must meet will also drive up costs, some of which could be passed on to tenants. And as we’ve seen throughout recent years, demand continues to outstrip supply across the rental market. So whilst 2024 was a huge year for lettings, 2025 has the potential to bring even more upheaval and change.”
