Rents across England fell for the fifth consecutive month in December 2024, according to the latest Goodlord Rental Index. After a summer of record-high prices, the rental market has shown signs of stabilising, with average rents down nearly 2% month-on-month. Despite this dip, rents remain 3.3% higher year-on-year, reflecting a steady upward trend for landlords.
Rents still up year-on-year
In December 2024, average rents across England stood at £1,185, up from £1,147 in December 2023. The South East led the year-on-year increases with rents up 5.7%, while the North East saw the smallest rise at just over 2%.
This modest annual growth contrasts sharply with the summer’s peak figures. “Rents in August 2024 were tracking 10% higher year-on-year compared to August 2023,” noted the report. The significant cooling since then signals a more balanced market as 2024 drew to a close.
A quieter December
December’s 1.7% month-on-month drop in rents is in line with seasonal trends, with landlords typically seeing less demand during the festive period. The average rent in December was also 19% lower than the summer’s high of £1,470 per property per month recorded in July 2024.
Voids, the period a property remains unoccupied between tenancies, held steady at 21 days—unchanged from November but slightly longer than December 2023’s average of 20 days. While Greater London saw no change in void periods (18 days), the West Midlands experienced a notable improvement, with voids dropping from 24 days in November to 18 days in December.
Outlook for landlords in 2025
Looking ahead, industry experts are predicting significant shifts in the rental market in 2025. William Reeve, CEO of Goodlord, highlighted upcoming legislation and ongoing supply-demand imbalances as key factors that could drive further changes.
“After the fireworks of the summer, the rental market ended the year in a far more subdued fashion. However, this could be the calm before the storm,” said Reeve. “The Renters’ Rights Bill, set to outlaw bidding wars, may lead to higher asking prices. Additionally, the new compliance requirements for landlords could drive up costs, some of which may be passed on to tenants.”
Reeve also emphasised the persistent gap between supply and demand, which has been a hallmark of recent years: “Demand continues to outstrip supply across the rental market. While 2024 was a huge year for lettings, 2025 has the potential to bring even more upheaval and change.”
For landlords, the recent dip in rents presents an opportunity to prepare for what lies ahead. With legislation on the horizon and market pressures persisting, staying informed and proactive will be key to navigating the challenges of 2025 while maximising investment potential.
