October saw a significant reduction in rental costs across England, according to the latest Goodlord Rental Index.
Average rents dropped by 12% month-on-month, marking a sharp decline after a summer and early autumn of record-breaking highs. At the same time, void periods lengthened in nearly every region, as the market entered its traditionally quieter winter phase.
Despite the monthly slowdown, year-on-year figures remain resilient, with rental averages now showing a stronger annual uplift than in September – a sign that underlying supply and demand pressures continue to shape the market.
Across all regions of England, rents fell by an average of 12%, bringing the national average down from £1,447 in September to £1,276 in October. For tenants moving last month, this equates to an annual saving of around £2,052.
The South West recorded the most dramatic change, with rents tumbling by 24%, while the South East, Greater London, and East Midlands all saw double-digit decreases of more than 10%. The smallest shifts were in the North West and West Midlands, where rents dipped by around 6%.
While the scale of the month-on-month fall appears steep, it aligns with seasonal trends. In both 2023 and 2024, rents dropped by around 12% between September and October, reflecting predictable cyclical movements in the rental market.
On a year-on-year basis, rents remain 3.1% higher, rising from £1,238 in October 2024 to £1,279 this year. Although this growth is below the 4.6% annual rise recorded in January, it is notably stronger than the 2% uplift reported in September.
Annual rental inflation is currently most pronounced 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 relatively shielded from increases, with year-on-year inflation under 2%, while the East Midlands has even seen a slight decline – properties there now cost an average of £4 less per month than in 2024.
As is often the case when rents fall, void periods lengthened in October. Nationally, the average void increased from 16 days in September to 21 days in October – a 31% rise. All regions experienced longer voids except for the West Midlands, where averages decreased slightly from 24 days to 23 days.
The most significant increases were in Greater London and the South East, where voids grew by over 50%, while the North East saw the sharpest shift, with void periods nearly doubling from 12 days to 23. By comparison, in October 2024, the national average void period was slightly shorter at 19 days.
Tenants moving into new properties in October also reported slightly higher average salaries than those in September. Average earnings rose from £38,466 in September to £38,875 — an increase of £409 per year — suggesting that higher wages may be helping some renters offset the cost of living pressures.
William Reeve, CEO of Goodlord, commented: “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.”
