Rents rose again during March, according to the Goodlord Rental Index, the third month in a row. Year-on-year, rents are now tracking 4.6% higher.
Goodlord processes tens of thousands of tenancy applications each month and the Rental Index is based on confirmed tenancy prices, rather than advertised prices.
The average price of rental property in England was £1,213 during March. That is 4.6% higher than the £1,160 recorded in March 2024. In total, that means renters signing new tenancies in March 2025 were paying £636 more per year, per property compared to March 2024.
The South East saw the most significant rental growth over the year – jumping by over 6% year-on-year. In March 2024, a property in the South East cost £1,286 per month. Last month, this had risen to £1,365.
This was followed by the West Midlands and the North West, with both regions recording a 5% year-on-year rent rise. The slowest year-on-year growth was seen in the East Midlands, coming in at under 3%.
Prices only rose a fraction (0.33%) between February and March – up from £1,209 to £1,213 per property. However, this slight increase compares with a slight decrease in rental averages during the same period last year (Feb-March 2024), indicating a touch more momentum in the market than in 2024.
All regions monitored recorded a month-on-month rental increase, with the exception of the East Midlands which saw a 3% decrease during March (£1,018 to £987).
The largest rise in rents was recorded in Greater London, where they jumped up by over 1% – from £2,021 to £2,045.
Voids – the length of time a property is vacant between lettings – lengthened slightly during March. Averages sat at 21 days compared to February’s 20 days.
However, it was a more complex picture at regional level. Greater London, the North West, and the South West all saw voids shorten. Whilst in the East Midlands and the North East there was no change to voids month-on-month.
In contrast, the South East saw a lengthening of voids (rising by 2 days) and there was a big jump in the West Midlands (up by 5 days).
William Reeve, CEO of Goodlord, commented:
“We’ve long believed that rental prices didn’t reach their ceiling last summer and that this year will bring new rental cost highs.
“The steady creep of price rises we’ve tracked in 2025 so far appears to bear this out. And whilst the data shows that the pace of these rent rises and the pressures of market demand can take on a strong regional flavour – meaning not all renters will be at the sharp end of these shifts – the overall picture is currently pointing to another year of record breaking rents.”
