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Rents rise again as tenant demand holds firm

Landlords across England saw another month of rising rents in April 2025, with national figures showing a continued upward trend in average rental income. According to the latest Goodlord Rental Index, average rents increased for the fourth consecutive month, supported by solid demand and stable void periods ahead of the summer letting season.

Steady increases signal strength in regional markets
The average rent per property in England reached £1,216 in April, up from £1,213 in March—a 0.2% month-on-month increase. While the monthly rise is modest, annual growth tells a stronger story: April 2025 rents are 4.2% higher than the same period last year, when the average stood at £1,166. That’s an extra £600 a year in gross income per tenancy, welcome news for landlords balancing mortgage repayments and inflation-linked maintenance costs.

Three regions—the North West, South East, and West Midlands—recorded year-on-year rent growth of more than 5%, according to Goodlord’s analysis. The North East saw the steepest monthly climb in April, with prices increasing by over 2%. By contrast, Greater London saw a small dip in April rents, down 1%, though this follows significant rental growth over the previous 12 months.

William Reeve, CEO of Goodlord, reflected on the broader pattern: “It’s been another month of steadily increasing rents, at a time of the year when we often see more ups and downs in terms of rental averages.” He added, “This continues to underscore the prediction that this summer will bring a rental spike across the country.”

Rents rise again as tenant demand holds firm Landlord Knowledge

Voids remain steady, showing healthy demand across regions
Void periods—one of the key metrics landlords monitor—held steady at 21 days in April, identical to March’s figure. This level of consistency indicates robust tenant demand, especially as the industry enters the traditionally busy summer period.

That said, regional disparities remain. Properties in Greater London had the shortest average voids, with homes being re-let in just 16 days, demonstrating the capital’s unrelenting rental appetite. On the flip side, the East Midlands recorded the longest average void at 28 days, suggesting landlords there may need to work harder to attract tenants or adjust pricing to reflect local conditions.

Despite these variations, Goodlord’s data—collected from thousands of tenancy applications across more than 3,500 UK letting agencies—suggests a broadly balanced market. As Reeve put it: “Whilst the regional picture is nuanced when it comes to voids, the national averages highlight steady demand from tenants for new properties.”

Tenant incomes rising faster than rents—a promising signal
A striking detail from the April index is that tenant incomes are rising faster than rental costs. The average salary of a tenant signing a new lease was £38,629, up 4.94% on April 2024’s average of £36,810. This increase in renter earnings outpaces the 4.2% rise in average rent, suggesting affordability may be stabilising despite continued upward pressure on rents.

For landlords, this is an encouraging trend. Higher tenant incomes typically translate into fewer arrears, greater resilience to rent increases, and stronger long-term tenancies. In real terms, it gives landlords the confidence to invest in their properties or expand portfolios without fearing rent pushback or void risk.

 

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