Rents see greatest month-on-month rise of 2025 to this point

There was a big enhance in rental costs throughout the nation in current weeks, in response to the most recent Goodlord Rental Index.

Because the market heads into its busiest season, month-on-month rents have been up by over 3% in June, together with a significant spike within the South West. Rental worth averages at the moment are 3.2% greater year-on-year. Voids shortened in most areas, highlighting elevated demand.

The common price of hire in England rose by 3.2% throughout June, the best month-on-month enhance recorded by the Index this 12 months. This takes the common rental worth from £1,226 in Could to £1,265 in June – an increase of £39 a month (or £468 a 12 months).

At a regional stage, nevertheless, the rise was not evenly distributed. Higher London, the North East, and the North West all noticed rises of between 2-4%. However the South West recorded a significant spike in costs with rents up by an enormous 14%. Apparently, the area noticed a month-on-month rise of the identical magnitude – 14% – throughout June final 12 months.

As rents soared in some areas, two areas recorded a dip in common costs. The East Midlands and the West Midlands each noticed rents cut back by barely lower than 2% in comparison with Could’s costs.

As soon as once more, the Index exhibits a big year-on-year rise in rents – up by 3.2% from £1,225 in June 2024, to £1,265 in June 2025. All however one area recorded a year-on-year enhance, with probably the most vital soar seen in Higher London, the place costs are up by over 5% in comparison with the identical time final 12 months. This was adopted by the South East, which recorded a year-on-year rise of over 4%.

Nevertheless, there are indicators that the strain is easing and that the speed of year-on-year will increase is beginning to sluggish – June’s year-on-year rise of three.2% (i.e. in comparison with the identical time final 12 months) marks the fourth consecutive month of lowering year-on-year hire inflation. It compares to:

• 3.7% in Could 2025 (in comparison with Could 2024)

• 4.2% in April 2025 (in comparison with April 2024)

• 4.6% in March 2025 (in comparison with March 2024)

This means that, though month-on-month worth rises proceed to set new information, the tempo of year-on-year rental inflation is starting to imagine a extra average sample general.

Voids shortened throughout England final month. On common, void durations have been lowered from 21 days in Could to twenty days in June.

Final 12 months, in June 2024, voids have been even shorter – at 17 days. This additional underscores the indication that the market could also be transferring in direction of a extra sustainable footing over the long-term.

William Reeve, CEO of Goodlord, commented: “The info is exhibiting us two actually attention-grabbing forces at play. On the one hand, we’re seeing rents hotting up as we enter summer season – all indicators level to there being a brand new rental worth document set this season. Nevertheless, alternatively, the narrowing of the year-on-year rental rises exhibits us that a few of the long-term warmth is beginning to seep out of the system.

“This might be an early indication that provide and demand is starting to recalibrate, though the upcoming passing of the Renters’ Rights Invoice – which is unpopular with landlords – may doubtlessly spark a buy-to-let dump that ideas the steadiness again within the different route.”