Rental inflation held at 5% year on year in October for the second month running, according to property technology firm Goodlord’s latest Rental Index.
The figure sits well above the 3.1% annual rental inflation the Index recorded in October 2025 and the 3.6% UK inflation rate.
Monthly growth cooled, however. Rents rose 0.6% between September and October, down from 0.9% the previous month, and average void periods lengthened to 28 days from 20. Rents still rose in every region, and Goodlord says the data suggests the market may be edging towards its traditional winter slowdown.
Average rents were £1,592 last month, compared with £1,516 in October 2025. That leaves tenants paying £912 more a year than they did 12 months ago.
Goodlord has also changed how it builds the Index in recent months, moving closer to the approach in official ONS statistics. The Index now weights results by property characteristics, region and number of tenants, applies region-specific data quality checks and weights the national figure across all tenancies. It also includes data on Scotland and Wales.
Rental inflation across nations and regions
Wales recorded the sharpest annual rise, with rents up 7%, while England posted 5.7%. Scotland saw the most modest growth at 2.7%. Every region recorded a year-on-year increase except the East of England, where rents fell a marginal 0.3%.
The North East again led the regions, with rents up 14.2%. Average rents there rose from £881 to £1,007, which adds £1,512 a year for tenants. Yorkshire and the Humber also saw a significant increase, with annual rent growth of 8.7%.
Monthly growth cools
Yorkshire and the Humber recorded the biggest monthly rise at 2.1%, reversing a dip in September. The North West followed at 1.2%, well below the 3.1% it posted the month before.
The sharpest slowdowns came in the regions that led in September. The North East rose just 0.7% after jumping 5.6%, while the South West slowed to 0.4% from 2.5%.
Voids lengthen
The average void period of 28 days compares with 21 days at the same point last year. Greater London recorded the shortest voids at 25 days on average. Wales had the longest at 34 days, followed by Yorkshire and the Humber at 32 days. In the North East, where voids lasted just 11 days in September, they lengthened to 28 days.
“The headline figures this month haven’t changed: rental inflation continues apace, and the market is putting the squeeze on tenant incomes,” said William Reeve, chief executive of Goodlord.
“As predicted, we believe that this rental inflation is an unintended consequence of the Renters’ Rights Act; factors including the ban on over-bidding and annual rent reviews are combining to push up rents, compounded by continuing constraints on supply.
“However, the underlying metrics point to the likelihood of a cooler few months ahead, as month-on-month price rises lose some of their heat and voids start to lengthen. The winter is often the slowest period of the year for the lettings market, although this seasonal predictability has been clouded by a range of factors over the last year, namely the introduction of the Renters’ Rights Act. It means we can’t take anything for granted this early in the season.”
