"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"
- William Reeve - Goodlord
The rental market in England is showing signs of easing after a summer marked by record highs. Data from the latest Goodlord Rental Index, which tracks confirmed tenancy figures, indicates that average rents dipped in September while annual rent inflation slowed. Voids also lengthened in most regions as the market entered what is typically a quieter period for lettings.
Monthly rents ease back
Rents fell during September, down by an average of 2% across England. The average monthly rent now stands at £1,447, compared with £1,480 in August.
The sharpest regional drops were in the North East and East Midlands, where rents fell by 8%. The South West followed with a 7% decline.
Two regions moved in the opposite direction. In Greater London, rents rose by more than 6% during September, likely influenced by incoming students and graduates. The West Midlands also recorded a small rise of 1%.
Annual inflation slows
On a yearly basis, rents remain higher. Average costs in September were 2.1% above the same month last year, moving from £1,417 in 2024 to £1,447 in 2025.
Annual increases were recorded across every region except the South East, which saw a slight fall of 0.6%. Gains ranged from 1.4% in the West Midlands to 3.8% in Greater London.
So far this year, the pace of rental inflation has eased. September’s 2.1% annual rise is less than half the 4.6% reported in January, signalling a shift away from the steep rises seen previously.
Longer voids emerge
Average void periods, which measure the time a property remains empty between tenants, extended to 16 days in September, up from 15 days in August.
This also exceeds the 15-day figure recorded in September 2024. Only two regions saw shorter voids last month: Greater London, which dropped from 12 days to 10, and the North West, where voids fell from 21 days to 17, a reduction of 19%.
Tenant incomes climb
Tenant salaries improved in September. The average salary of a renter entering a new tenancy rose by 2.3% compared to August, moving from £37,584 to £38,466. This is also a 3% increase on September 2024 levels.
As a result, salary growth is currently outpacing both monthly and annual rent rises across the country.
Market outlook
“As predicted, this month’s data shows the first signs of a market cooling off following an intense summer of record breaking rents,” said William Reeve, chief executive officer at Goodlord. “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.”
