Date Published 05 September 2025
The rental market remained buoyant throughout August, according to Goodlord's latest Rental Index. While the average cost of rent across England dipped slightly month-on-month, prices remain 2.9% higher year-on-year. At £1,480 per property, the average monthly rent is now the second-highest level recorded since the Index began in 2019.
Regional highs despite national dip
After July's record-breaking rents of £1,496, August's average eased by 1%. However, several regions bucked the trend, setting new records:
• South East: Rents surged by 11%, breaking through the £1,600 barrier for the first time.
• Greater London: Prices rose 5.5% to £2,322 — the second-highest ever recorded for the capital.
• East Midlands: Rents climbed by more than 4% compared to July.
Other regions saw more modest shifts. The North East, South West, and West Midlands all recorded slight decreases, while the North West saw the sharpest correction: a 20% fall following July's rental spike.
Year-on-year perspective
Across England, rents rose from an average of £1,438 in August 2024 to £1,480 in August 2025. This £504 annual increase per tenant reflects a slower pace of growth compared with earlier in the year.
• March 2025 saw year-on-year increases of 4.6%.
• August's 2.9% rise signals that rental inflation is beginning to soften.
Looking ahead, 2026 may see prices level out, with monthly averages aligning more closely to 2025 benchmarks.
Notable regional trends
• North West: Largest year-on-year rise at 6.6%.
• Greater London: Up 5.3% compared to last August.
• North East: The only region to see a year-on-year decline — though marginal, dropping by just £1.
Market dynamics: void periods
The average void period (time between tenancies) lengthened slightly from 12 days in July to 15 days in August. This matches the August 2024 average, underscoring the persistent supply-demand pressures in the sector.
Industry outlook
William Reeve, Chief Executive of Goodlord, commented:
'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 expect another month of high rents in September, before conditions cool off into autumn. The next six months will be pivotal for the market, as the pace of rent inflation slows and early signs of supply-demand rebalancing emerge.'
Looking ahead
With the incoming Renter's Rights Bill and potential tax changes for landlords in the autumn Budget, the rental sector faces a period of significant change. Adams Estates is certain there will be changes to overall rental market trends as a result of this, we will continue to monitor developments closely and ensure our clients remain fully informed.
