"Across six years of operating the Index, we’ve never recorded a higher monthly rental average"
- William Reeve - Goodlord
The average cost of rent in England reached an all-time high in July, according to the latest Goodlord Rental Index. The index, which has tracked new tenancy contracts across the country since January 2019, recorded a national average rent of £1,496 for the month.
This surpasses the previous record of £1,470, set in July 2024. The increase reflects widespread rent hikes across multiple regions, with some seeing particularly steep monthly rises.
Rental prices climb sharply month-on-month
The July average of £1,496 represents an 18.3% rise compared to June. This mirrors the same pattern observed last summer, when a similar surge in demand between June and July pushed prices higher.
July remains one of the most active months in the rental calendar, fuelled by a number of seasonal factors. These include the turnover of student housing, recent graduates relocating for work, and families seeking new homes ahead of the new school year.
The current cycle of heightened demand was influenced by the pandemic. In July 2020, following months of lockdown restrictions, the market experienced a sharp increase in activity. As a result, many tenancies now end in early summer, triggering recurring waves of demand during this period.
Sharp regional differences in rental growth
Regional data from July shows striking month-on-month increases in some parts of England. Rents in the North West rose by 42%, while the South West recorded a 34% jump. In the North East, average rental prices were up by 27%.
By contrast, Greater London recorded the smallest increase, with prices up by 4%. The South East followed with a 6% rise.
Overall, renters who moved into a new property in July are paying, on average, £231 more per month than those who signed contracts in June. This equates to an annual difference of £2,772.
Annual rent growth begins to ease
Although July marked a monthly peak, longer-term indicators suggest a potential levelling out of rental inflation. Throughout 2025, annual rent increases have been losing momentum.
In July, the year-on-year rise stood at 1.8%, up from £1,470 in July 2024 to £1,496 in July 2025. This compares to a 4% year-on-year rise recorded in February.
At a regional level, trends are less uniform. The East Midlands and South West both saw slight annual decreases in rent, at 1% and 1.6% respectively. Meanwhile, Greater London and the West Midlands posted year-on-year increases of nearly 5% and over 6%.
Void periods drop as demand intensifies
With demand climbing, void periods also dropped sharply in July. The average time a property stood empty between tenancies fell from 20 days in June to 12 days in July, a 40% reduction.
This figure is just one day longer than the void period recorded in July 2024, when it stood at 11 days.
Regions with the most significant rent increases also saw the largest drop in void periods. In the North West, voids fell from 22 days in June to just 5 days in July, a 77% decrease. The North East saw a 65% drop, from 20 days to 7.
In Greater London, which recorded the smallest monthly rent increase, the change in voids was more modest, falling from 16 days to 14.
“Across six years of operating the Index, we’ve never recorded a higher monthly rental average,” said William Reeve, chief executive officer of Goodlord. "Likewise, every month of 2025 has brought a softening of year-on-year rent inflation. So whilst the market continues to operate under intense pressure, the late autumn could bring something more predictable in terms of rents and voids.”
Reeve added, “Throughout the year, the data has been pointing to two clear trends: firstly, that we were likely to see new rental records set over the summer and secondly, that the year-on-year pace of price increases overall is starting to slow. This month’s figures show both predictions coming to pass.”
