The rental market across England is finally showing signs of cooling following a summer in which a range of rental records were broken.
According to the latest Goodlord Rental Index - the market’s most definitive analysis of confirmed tenancy data - month-on-month rents dipped during September, and year-on-year rent inflation continues to slow. Across the country, voids increased in the majority of regions as the market heads into what is traditionally a quieter season for lettings.
Rents cool off after huge summer spikes
Rents were down during September, dropping by an average of 2% across England. The new rental average is £1,447, down from August’s figure of £1,480.
The biggest regional shifts were seen in the North East and the East Midlands, where prices dropped by a significant 8%. This was followed by a 7% reduction in the South West.
Two regions bucked the trend, however. Greater London saw prices rise by over 6% during September - potentially driven by an influx of students and new graduates to the capital. The West Midlands also saw a marginal rent rise, with prices up by 1%.
Rents up 2% annually as inflation pace reduces
Compared to the same time last year, rents are now 2.1% higher year-on-year. In September 2024, tenants were paying £1,417 per property on average. This September, that had risen to £1,447 per month.
Year-on-year, rents are higher in all regions except for the South East, which saw a very slight reduction in average costs during September - down 0.6%. Elsewhere, rents are up in all regions - ranging from 1.4% rises (seen in the West Midlands) to increases of 3.8% (recorded in Greater London).
Throughout 2025 to date, the pace of rental inflation has been steadily decreasing. This month’s 2.1% rise contrasts starkly with January’s 4.6%, further highlighting that the era of dramatically escalating prices could be behind us.
Reflecting the reduction in rents, voids lengthened in September. Average void periods - the length of a time a property is vacant between tenancies - are now 16 days across England, up from 15 days in August.
This means voids are slightly longer than they were at the same time last year. In September 2024, voids sat at 15 days.
Only two regions saw a shortening of void periods in September. Greater London saw voids drop from 12 days down to 10. And the North West saw voids reduce from 21 days to 17 - a 20% shift.
There was better salary news for tenants this month. During September, the average salary of a renter signing a new tenancy agreement was up by 2.3% compared to August. Salary averages increased from £37,584 in August to £38,466 in September. This is also 3% higher year-on-year compared to September 2024.
Overall, it means salary rises are currently modestly outpacing both monthly and year-on-year rental cost rises across the UK.
William Reeve, CEO at Goodlord, comments:
“As predicted, this month’s data shows the first signs of a market cooling off following an intense summer of record breaking rents. Prices are down over the previous month and annual rental inflation also continues to slow. Together, along with lengthening voids, these numbers indicate a lettings market starting to slow down for winter.
“However, with the Renter’s Rights Bill now just weeks away from becoming law, a large number of new variables are able to hit the market; from bans on tenants over-bidding, to the ability for landlords to increase rents just once a year. These new factors will undoubtedly impact the market, meaning a new era of less predictable market patterns could soon be upon us.”