"The next six months will be pivotal for the market; the pace of rent inflation is going down, and there are indications that supply and demand pressures are slightly easing"
- William Reeve - Goodlord
The UK rental market remained strong in August, according to the latest Goodlord Rental Index. While the average monthly rent across England fell slightly from July, prices remain 2.9% higher than last year, standing at £1,480 per property.
This marks the second-highest monthly average recorded since the Index began in 2019. At a regional level, August saw new records, including the highest rental averages ever recorded for the South East.
August rents remain elevated
After July’s record of £1,496, August averages dipped by 1% across England. Despite the minor fall, £1,480 remains the second-highest rental average in the Index’s history. Some regions, however, saw rents climb above July’s peaks.
In the South East, rents rose by 11%, breaking £1,600 for the first time. Greater London recorded a 5.5% increase, reaching £2,322, the second-highest average ever recorded for the capital. The East Midlands also experienced a rise of over 4% compared with July.
Elsewhere, rents fell in the North East, South West, and West Midlands. The North West saw the largest drop, with prices down 20% following a sharp spike in July.
Annual price growth slows
Year-on-year, average rents across England have risen 2.9%, up from £1,438 in August 2024 to £1,480 in August 2025. This equates to an additional £504 per year for tenants. However, the pace of growth is slowing, with March reporting a 4.6% year-on-year increase. This suggests 2026 may see rental costs stabilising around 2025 averages.
The North West and Greater London recorded the largest annual rises, at 6.6% and 5.3% respectively. The North East was the only region to see a slight year-on-year decline, with rents falling from £1,107 to £1,106.
Voids lengthen slightly
Average void periods, he time a property remains empty between tenancies, increased from 12 days in July to 15 days in August. This matches the void lengths from August 2024, reflecting ongoing supply and demand pressures in the rental market.
William Reeve, CEO of Goodlord, explained: “It’s been another busy month for the market. Whilst it was unlikely that we would see July’s average rent record broken, the regional picture across Greater London, the South East and the East Midlands shows that we haven’t hit the rental price ceiling just yet. We are expecting another month of high rents in September, before things start cooling off as we move into the autumn."
“The next six months will be pivotal for the market; the pace of rent inflation is going down, and there are indications that supply and demand pressures are slightly easing. Combine this with the disruption that the Renters’ Rights Bill will bring, and potential tax changes for landlords in the Budget in the autumn, and we’re in for a very interesting period for the sector."
