England’s rental market experienced a significant cooldown in October, with average rents dropping over 12% compared to September and year-on-year increases hitting an annual low, according to the latest Goodlord Rental Index. Voids—the time properties remain vacant between tenancies—also extended, signalling that the high demand seen from July to September has eased considerably.
Year-on-year rent increases narrow
Year-on-year rent increases have slowed sharply, with October showing a 4% rise compared to the same month in 2023, down from over 7% seen earlier this year. The average rent for a property in England in October was £1,238, up from £1,190 in October 2023. Greater London recorded the smallest year-on-year increase at just 2%, while the West Midlands saw the highest at nearly 6%.
Month-on-month rents drop by 12%
The biggest shift was seen in month-on-month data, with rents falling from £1,417 in September to £1,238 in October—a 12.6% decrease, or £179 less per month. Every region tracked by Goodlord recorded a decrease in rents, with the South West seeing the largest drop at 24%, followed by the South East at 16% and Greater London at 11%.
This decline comes after a particularly intense period from July to September when rents consistently exceeded £1,400 per month for three months in a row.
Voids increase as demand eases
With the market cooling, void periods have also lengthened. Average voids increased from 15 days in September to 19 days in October, a 27% rise, bringing void averages back to levels last seen in April 2024. In October 2023, voids averaged 18 days, indicating minimal year-on-year change.
Tenants benefit from salary boosts
Alongside declining rents, tenants saw a small salary increase. The average salary of renters signing new tenancies in October rose by 1.7%, from £37,350 to £37,997. Year-on-year, average salaries increased by 5.15%, outpacing rent increases for the second consecutive month.
William Reeve, CEO of Goodlord, commented: “If you read between the lines of last month’s figures, there were signs that a market softening was coming down the track—the latest Index bears this theory out. October tenancies brought decreased rents and a squeezing of the year-on-year rises, while salary figures were up modestly.”
He added that this shift provides some relief for tenants who faced steep rent increases over the summer. “This data indicates that we are ushering in a more manageable period for landlords and agents. They have been working extremely hard to keep pace with market demand, whilst also grappling with a huge raft of regulatory changes coming down the track.”
As the rental market stabilises, landlords and tenants alike may find relief in a more balanced market. For landlords, the extended voids and regulatory challenges are a reminder to stay proactive.
