"This month’s figures present something of a paradox. On the one hand, we have a big drop in rents and associated lengthening of voids; exactly what we’d expect to see at this time of year. But we’ve also recorded a slight reversal in year-on-year rental inflation"
- William Reeve - Goodlord
October saw a notable drop in rental costs across England, according to the latest Rental Index from Goodlord. Month-on-month rents fell by 12%, following a summer and early autumn of record averages. Voids increased in nearly every region as the rental market entered its quietest season. Despite this, year-on-year rental averages remained resilient, highlighting ongoing supply and demand pressures.
October sees dramatic rent reductions
Rents fell across all English regions in October, with the average cost dropping from £1,447 in September to £1,276, a 12% decrease. For tenants moving last month, this represents an annual saving of £2,052.
The largest reduction was in the South West, where rents fell by 24%. The South East, Greater London, and the East Midlands all recorded decreases of more than 10%, while the North West and West Midlands saw more modest drops of around 6%.
This month-on-month decline aligns with seasonal expectations and mirrors trends from previous years. In October 2024, rents fell by 12.5% between September and October, and in 2023, the average reduction was 11.5%.
Year-on-year rents remain positive
Looking at annual figures, rents rose by 3.1% compared with October 2024, increasing from £1,238 to £1,279. This is below the 4.6% year-on-year increase recorded in January 2025 but higher than September’s 2% annual rise.
The strongest rental inflation was seen in the North West, Greater London, and the South East, where rents are up more than 4% year-on-year. The South West and West Midlands recorded slower growth, with inflation under 2%, while rents in the East Midlands fell slightly, down £4 per month on average compared with 2024.
Voids lengthen as rents fall
As rents decreased, average void periods increased from 16 days in September to 21 days in October, a 31% rise. All regions experienced longer voids except the West Midlands, where the average fell by one day, from 24 to 23 days.
Voids more than doubled in the North East, rising from 12 to 23 days, while Greater London and the South East saw increases of over 50%. By comparison, voids in October 2024 averaged 19 days across England.
Tenants report higher salaries
Renters signing new tenancies in October reported slightly higher average salaries than those in September, rising from £38,466 to £38,875, a £409 annual increase.
“This month’s figures present something of a paradox. On the one hand, we have a big drop in rents and associated lengthening of voids; exactly what we’d expect to see at this time of year. But we’ve also recorded a slight reversal in year-on-year rental inflation," comments Goodlord CEO, William Reeve. "Throughout 2025, these figures had been steadily decreasing each month. The rise from 2% in September to 3% in October could indicate that, even in the quietest season, the market is showing a little more heat than usual. Year-on-year change is the metric to watch over the winter.”
