October noticed a big discount in rental prices throughout England, based on 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 identical time, void durations lengthened in almost each area, because the market entered its historically quieter winter part.
Regardless of the month-to-month slowdown, year-on-year figures stay resilient, with rental averages now displaying 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 mean 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 probably the most dramatic change, with rents tumbling by 24%, whereas the South East, Higher 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 dimensions of the month-on-month fall seems steep, it aligns with seasonal tendencies. 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 12 months. Though this progress is under the 4.6% annual rise recorded in January, it’s notably stronger than the two% uplift reported in September.
Annual rental inflation is at present most pronounced within the North West, Higher London, and the South East, the place rents are up by over 4% in comparison with October final 12 months.
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 mean of £4 much less per 30 days than in 2024.
As is usually the case when rents fall, void durations lengthened in October. Nationally, the common void elevated from 16 days in September to 21 days in October – a 31% rise. All areas skilled longer voids aside from the West Midlands, the place averages decreased barely from 24 days to 23 days.
Essentially the most vital will increase had been in Higher London and the South East, the place voids grew by over 50%, whereas the North East noticed the sharpest shift, with void durations 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 12 months — 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, now we have an enormous drop in rents and affiliate lengthening of voids; precisely what we’d anticipate to see at the moment of the 12 months. However we’ve additionally recorded one thing of a reversal within the year-on-year rental inflation figures.
“All through 2025 to this point, these figures have been pretty steadily decreasing every month. Nonetheless, 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 slightly extra warmth than common. The year-on-year change is the metric to look at over the winter.”
