October noticed a major discount in rental prices throughout England, in line with the newest Goodlord Rental Index.
Common rents dropped by 12% month-on-month, marking a pointy decline after a summer time and early autumn of record-breaking highs. On the similar time, void intervals lengthened in almost each area, because the market entered its historically quieter winter section.
Regardless of the month-to-month slowdown, year-on-year figures stay resilient, with rental averages now exhibiting a stronger annual uplift than in September – an indication that underlying provide and demand pressures proceed to form the market.
Throughout all areas of England, rents fell by a median of 12%, bringing the nationwide common down from £1,447 in September to £1,276 in October. For tenants shifting final month, this equates to an annual saving of round £2,052.
The South West recorded essentially the most dramatic change, with rents tumbling by 24%, whereas the South East, Better London, and East Midlands all noticed double-digit decreases of greater than 10%. The smallest shifts had been within the North West and West Midlands, the place rents dipped by round 6%.
Whereas the size of the month-on-month fall seems steep, it aligns with seasonal developments. In each 2023 and 2024, rents dropped by round 12% between September and October, reflecting predictable cyclical actions within the rental market.
On a year-on-year foundation, rents stay 3.1% greater, rising from £1,238 in October 2024 to £1,279 this yr. Though this progress is beneath the 4.6% annual rise recorded in January, it’s notably stronger than the two% uplift reported in September.
Annual rental inflation is presently most pronounced within the North West, Better London, and the South East, the place rents are up by over 4% in comparison with October final yr.
Renters within the South West and West Midlands have been comparatively shielded from will increase, with year-on-year inflation beneath 2%, whereas the East Midlands has even seen a slight decline – properties there now price a median of £4 much less per 30 days than in 2024.
As is usually the case when rents fall, void intervals lengthened in October. Nationally, the typical void elevated from 16 days in September to 21 days in October – a 31% rise. All areas skilled longer voids apart from the West Midlands, the place averages decreased barely from 24 days to 23 days.
Essentially the most important will increase had been in Better London and the South East, the place voids grew by over 50%, whereas the North East noticed the sharpest shift, with void intervals almost doubling from 12 days to 23. By comparability, in October 2024, the nationwide common void interval was barely shorter at 19 days.
Tenants shifting into new properties in October additionally reported barely greater common salaries than these in September. Common earnings rose from £38,466 in September to £38,875 — a rise of £409 per yr — suggesting that greater wages could also be serving to some renters offset the price of residing pressures.
William Reeve, CEO of Goodlord, commented: “This month’s figures current one thing of a paradox. On the one hand, we’ve got a giant drop in rents and affiliate lengthening of voids; precisely what we’d count on to see presently of the yr. However we’ve additionally recorded one thing of a reversal within the year-on-year rental inflation figures.
“All through 2025 up to now, these figures have been pretty steadily lowering every month. Nevertheless, the slight enhance from 2% in September to three% in October might point out that we’re going into the quietest season for the market with a bit of extra warmth than standard. The year-on-year change is the metric to observe over the winter.”
