Rents look set to hit a new record high in 2026 on the back of a major supply-fdemand imbalance in teh market, and that is despite a fourth consecutive monthly fall in November.
According to the Goodlord Rental Index, rents dropped by more than 2% across England last month, while void periods rose by 14% — a typical trend during one of the quietest times of the year. Despite this slowdown, annual rental averages remain higher than a year ago, reflecting continued underlying pressure in the market.
Average rents across England decreased by 2.4% in November, falling from £1,276 in October to £1,245. This marks the fourth month of declines since the peak in July, when average rents reached £1,496.
The cumulative effect of these reductions means renters starting a new tenancy in November are paying around £3,012 a year less — or £251 per month less — than those who moved in at the height of the summer market.
Rents dropped in all regions monitored, bar one. The biggest shift was seen in Greater London, where month-on-month prices were 4.5% lower during November, followed by the North West, which saw a 4.3% reduction.
The only region which saw a rise in rents was the West Midlands – although prices increased by less than £1 on average across the month.
Continuing the trend seen last month, the pace of year-on-year rental inflation is climbing once again. Compared to November last year, average rents are up by 3.3%. In November 2025, rental averages sat at £1,245 compared to 2024’s figure of £1,205.
This 3.3% rise is higher than October’s figure of 3.1% and significantly higher than figures recorded in September, when year-on-year rental inflation sat at 2%.
The most significant year-on-year rise was recorded in the North West, where prices are 6.6% higher compared to the same time last year. This was followed by the North East, where prices are up 5% year-on-year.
This upswing in year-on-year figures indicates that there may still be new rental records to come in 2026.
Voids lengthened during November, as you would expect to see during a month of reduced rental averages. The average void period lengthened from 21 days to 24 days across England, a rise of 14%.
This also means voids are higher than at the same time last year (November 2024) – when voids sat at 21 days.
The longest void periods can now be found in the West Midlands, where properties are vacant between tenancies for an average of 30 days. And the lowest are in London, where voids are currently 20 days.
William Reeve, CEO of Goodlord, commented: “We are seeing a pattern develop across these critical figures. Whilst month-on-month rental averages continue to mirror the seasonal ebbs and flows we’d expect of the market [particularly in the winter months], the uptick in the pace of annual rental inflation shows that supply and demand pressures aren’t abating. This could point towards new rental records being set next year and another intense year for the market, particularly as the Renters’ Rights Act comes into effect.”
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