The rental market in England continues to see steady growth, with February figures revealing a 4% year-on-year increase in rental prices. According to the latest Goodlord Rental Index, the average rent now stands at £1,209 per property, up from £1,162 in February 2024.
“Within the latest figures, we still see signs of rising demand in a market that refuses to cool off,” said William Reeve, CEO of Goodlord. “Voids have shortened once again after January’s record-breaking lengths. And whilst overall rents for February are only slightly higher than January’s figures, we don’t always see month-on-month increases at this time of year. These are strong indications that the PRS will continue to heat up alongside the weather.”
The highest annual rental increase was recorded in the West Midlands, where prices jumped by 7%, rising from £934 to £1,000. By contrast, the East Midlands saw a more modest rise of 2.5%, moving from £992 to £1,018.
Regional rental shifts and market fluctuations
On a monthly basis, rents rose marginally by 0.2%, marking a continued upward trajectory. While some regions saw modest declines, others experienced significant jumps.
The East Midlands led the charge with a 3% increase, seeing rents rise from £987 to £1,018. The South East followed closely, registering a 2% rise from £1,320 to £1,350. However, not all regions followed this pattern, with Greater London, the North East, and the North West seeing slight reductions in average rental prices.
For landlords, these fluctuations present opportunities and challenges alike. While some regions are witnessing an easing in rental growth, others are becoming more competitive, pushing property owners to adapt their strategies accordingly.
Void periods shorten, strengthening landlord position
A notable shift occurred in void periods – the time a rental property remains empty between tenancies. Following a record-long January, voids across all monitored regions dropped from 24 days to 20 days, a 17% decrease.
This is the lowest void average since October 2024, a clear sign that tenant demand is picking up again as spring approaches. Despite this improvement, the February 2025 void average remains slightly longer than the February 2024 average of 18 days.
Regionally, the most substantial drop in void periods occurred in the North West, where they fell from 30 days to 21 days (-30%). Similarly, Greater London saw voids shrink significantly, from 22 days to 16 days (-27%).
For landlords, this means less time with vacant properties and improved cash flow – a welcome change from January’s sluggish market.
What this means for landlords
These figures indicate that demand for rental properties remains robust, despite economic uncertainties. With voids reducing and rental prices edging upwards, landlords can be confident in the strength of their investments.
The property rental sector appears to be entering a phase of sustained demand, offering landlords strong returns, especially in high-growth areas. However, regional disparities highlight the need for strategic positioning when setting rental prices or acquiring new properties.
As spring approaches, all signs point to another competitive summer rental market, with landlords benefiting from rising demand and reduced vacancies.
