The rental market across England is beginning to ease after a summer marked by multiple rental price records.
The latest data from the Goodlord Rental Index, which tracks confirmed tenancy agreements, shows that rents fell slightly in September, with year-on-year rent inflation also slowing down.
As the letting market enters its typically quieter autumn period, voids increased in most regions across the country.
Average rents in England decreased by 2% in September, dropping to £1,447 from £1,480 in August.
The largest declines occurred in the North East and East Midlands, where rents fell by around 8%. The South West also saw a notable decrease of 7%.
However, Greater London experienced a rent increase of over 6% in September, possibly due to a rise in demand from students and recent graduates. The West Midlands saw a smaller increase of 1%.
Rents are now 2.1% higher compared to the corresponding period last year, with rents hitting £1,447 per calendar month (pcm) in September.
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, year-on-year rent increases range from 1.4% (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% YoY 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 to 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 19% shift.
Tenants saw some positive news on the salary front this September. The average salary of renters signing new tenancy agreements rose by 2.3% compared to August, increasing from £37,584 to £38,466. This figure is also 3% higher than the same period last year.
Overall, salary growth is currently outpacing both monthly and annual increases in rental costs across the UK
William Reeve, CEO at Goodlord, commented: “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.”
