Rents in England increased for the third consecutive month in March, according to the Goodlord Rental Index. This consistent rise highlights the ongoing strength of the rental market, offering a promising outlook for landlords who continue to navigate evolving market dynamics.
Data from Goodlord, which processes thousands of tenancy applications each month for over 3,500 lettings brands, reveals that rents are now tracking 4.6% higher year-on-year. The average rent in England rose to £1,213 in March 2025, compared to £1,160 in March 2024. This equates to renters paying an additional £636 annually for new tenancies.
Regional growth highlights opportunities for landlords
The South East saw the most significant rent increase over the past year, with prices rising by 6%. In March 2024, the average rent in the region was £1,286 per month. By March 2025, this had increased to £1,365.
Both the West Midlands and the North West followed closely, each recording a 5% year-on-year rent rise. On the other hand, the East Midlands showed the slowest growth at just under 3%.
William Reeve, CEO of Goodlord, commented on the ongoing upward trend: “We’ve long believed that rental prices didn’t reach their ceiling last summer and that this year will bring new rental cost highs. The steady creep of price rises we’ve tracked in 2025 so far appears to bear this out.”
Reeve pointed out that while the data indicates regional variations, the overall picture suggests that 2025 could set new records for rental prices. This trend highlights the importance of landlords staying attuned to local market conditions while planning investment strategies.
March marks third consecutive month of rental growth
March marked the third month in a row where rental prices rose, albeit modestly by 0.33% from February, moving from £1,209 to £1,213 per property. In contrast, the same period last year saw a slight decline, indicating a more robust market this year.
Greater London recorded the largest month-on-month increase, with average rents climbing over 1% from £2,021 to £2,045. This demonstrates the capital’s ongoing appeal, despite challenges with affordability.
Notably, all regions monitored saw month-on-month rental growth, with one exception: the East Midlands, where rents fell by 3% from £1,018 to £987. This dip highlights the diverse nature of regional rental trends, underscoring the importance of targeted investment strategies.
Void periods show mixed trends
Void periods — the length of time a property remains empty between tenancies — increased slightly in March, averaging 21 days, up from 20 days in February.
However, regional differences were apparent. Greater London, the North West, and the South West all saw voids shorten, indicating strong demand. In contrast, the South East experienced a slight increase in voids by 2 days, while the West Midlands saw a notable rise of 5 days.
While some areas experienced longer void periods, the overall trend of shorter voids in key regions reflects continued tenant demand, offering reassurance to landlords.
Landlords advised to stay adaptable as market evolves
As rental prices remain on an upward trajectory, landlords are advised to consider both regional trends and the potential impact of upcoming legislative changes. Goodlord’s data indicates that the pace of rental increases, while steady, is not uniform across the country.
Reeve noted the varied nature of rental demand: “Whilst the data shows that the pace of these rent rises and the pressures of market demand can take on a strong regional flavour — meaning not all renters will be at the sharp end of these shifts — the overall picture is currently pointing to another year of record-breaking rents.”
For landlords, this means maintaining a flexible approach, staying informed about local trends, and being prepared to adjust pricing strategies where necessary. Areas like Greater London and the South East continue to demonstrate robust growth, while regions like the East Midlands may require more strategic planning to maximise rental returns.
The outlook remains positive for landlords who are prepared to adapt. As Reeve pointed out, the rental market is not likely to hit a ceiling just yet, and the continued upward trend suggests that 2025 could prove beneficial for those investing wisely.
