Rental prices continued their upward trend in May 2025, with the Goodlord Rental Index reporting the fifth consecutive monthly increase across England. Average monthly rents now stand at £1,226, the highest level recorded since October 2024. For landlords, this consistent rise signals robust demand heading into the typically high-turnover summer period, with experts predicting more growth to come.
“Rents jumped again in May,” said William Reeve, CEO of Goodlord. “The way the numbers are currently looking suggests that this year will be no exception [to the usual seasonal peak] and that a range of new rental records will be set in the coming months.”
North East and East Midlands lead regional gains
Rent increases were recorded in nearly every region of England, with the North East leading the charge at +2.2%, followed by the East Midlands at +1.8%. Even areas like Greater London and the South East—long considered saturated markets—continued to attract rising prices.
The only exception was the South West, which saw a modest dip of 0.6%, likely influenced by early-season stock being released before the traditional peak in demand.
Compared to May 2024, the average rent is now 3.7% higher, equating to an annual increase of over £500 per tenancy. However, the rate of increase has moderated slightly—down from 4.2% in April and 4.6% in March—a sign that the market may be gradually adjusting to last year’s rapid shifts.
“Price rises continue to be significant,” noted Reeve, “but the softening of year-on-year increases… could indicate a slight easing of the demand and supply imbalances in some regions.”
Void periods hold steady
The national void average i.e. the time a property remains empty between tenancies—remained unchanged for the third month running, holding firm at 21 days. Yet this consistency at national level masked dramatic shifts at the local level.
In the East Midlands, North West, South East, and South West, voids shortened as new tenancies were snapped up more quickly. In contrast, voids in the West Midlands jumped by 53%, and in Greater London, they rose by 19%, suggesting a more nuanced pattern of tenant movement and affordability tension in high-rent areas.
Tenant incomes dip—but demand holds strong
Interestingly, the average salary of tenants signing new leases fell by 2.5% in May, dropping from £38,629 in April to £37,676. While this still represents a 1.57% year-on-year rise, it’s now well below the 3.7% increase in rents—raising questions about how long tenants can absorb further hikes.
The sharpest income drops occurred in the North West (down 9.7%) and East Midlands (down 7.5%), while Greater London and the North East bucked the trend with modest growth. Still, wage stagnation is unlikely to put the brakes on landlord returns just yet—particularly with demand remaining high and properties letting swiftly in most regions.
“Ongoing supply issues coupled with landlord jitters ahead of the Renters’ Rights Bill means that rents remain on track to rise for the foreseeable,” Reeve warned.
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For landlords, the picture is clear: rents are rising, voids remain low in most areas, and tenant demand is pushing the market towards a strong summer. While policymakers debate tenant protections and landlords face ongoing uncertainty over regulation, current figures suggest the fundamentals remain firmly in landlords’ favour.
The full report can be read here.
