Rents dropped 11% in October after a record-breaking autumn, while voids increased to 21 days. Year on year, rents are up 3.1%.
October saw a significant reduction in the cost of rent across England, according to the latest Rental Index from Goodlord.
Rents dropped by 12% month-on-month, a major decrease following a summer and early autumn of record-breaking averages. Voids also lengthened in almost all areas of the country, as the rental market moves into its quietest period of the year. However, year-on-year rental averages showed more buoyancy than expected and are now higher than the annual uplift recorded in September, indicating ongoing supply and demand pressures across the market.
- October sees dramatic drop in rents
- Year-on-year rents buck trends to climb upwards
- Voids shoot up as rents drop
- Tenants see salary boost in October
- Quote from William Reeve, CEO at Goodlord
October sees dramatic drop in rents
Month-on-month rents reduced in every region of England during October, dropping by an average of 12%. This brings average rental costs down from September’s average of £1,447 to £1,276.
For tenants moving in October, this represents a significant annual saving of £2,052.
The largest reduction in rents was recorded in the South West, which saw prices drop by an eye-catching 24%. And the South East, Greater London and the East Midlands all saw rent reductions of over 10%. The smallest shifts were seen in the North West and the West Midlands, where rents reduced by a comparatively modest 6%.
Despite the significant month-on-month drop in rents, such a decline remains in line with expectations and mirrors market movements in previous years. In 2024, rents dropped by 12.5% between September and October. And in 2023, an average reduction of 11.5% was recorded over the same time period.
Year-on-year rents buck trends to climb upwards
At a year-on-year level however, rents are up by 3.1% - rising from £1,238 in October 2024 to £1,279 over the last month.
This is lower than the 4.6% year-on-year rental cost rise recorded in January this year. However, it is notably higher than year-on-year figures recorded in September, when rental inflation sat at 2%.
Annual rental inflation is currently the most notable in the North West, Greater London and the South East, where rents are up by over 4% compared to October last year.
Renters in the South West and West Midlands have been more shielded from rental rises, with year-on-year inflation sitting at less than 2% in October. And prices in the East Midlands are even down slightly compared to 2024 averages - with properties now costing £4 less per month, on average.
Voids shoot up as rents drop
When rents drop, voids often lengthen - this proved true for October. On average, voids increased from 16 days in September to 21 days in October; an increase of 31%.
Void increases were seen in all regions with the exception of the West Midlands, where averages dropped by one day - from 24 days to 23.
Elsewhere, voids lengthened by over 50% in both Greater London and the South East. The most notable shift was in the North East, where voids almost doubled - rising from 12 days to 23.
In October 2024, void averages were slightly shorter - recorded at 19 days across England.
Tenants see salary boost in October
Renters signing new tenancies during October also reported higher average salaries than their September counterparts. Average salaries were up from £38,466 in September to £38,875 in October - a rise of £409 per year.
William Reeve, CEO at Goodlord, comments:
“This month’s figures present something of a paradox. On the one hand, we have a big drop in rents and associate lengthening of voids; exactly what we’d expect to see at this time of the year. But we’ve also recorded something of a reversal in the year-on-year rental inflation figures. Throughout 2025 to date, these figures have been fairly steadily reducing each month. However, the slight increase from 2% in September to 3% in October could indicate that we’re going into the quietest season for the market with a little more heat than usual. The year-on-year change is the metric to watch over the winter.”
