Rents take dramatic tumble as October dampens prices

October saw a significant reduction in the cost of rent across England, according to the latest Rental Index from Goodlord.

Rents dropped by 12% month-on-month, a major decrease following a summer and early autumn of record-breaking averages.

Voids also lengthened in almost all areas of the country, as the rental market moves into its quietest period of the year. However, year-on-year rental averages showed more buoyancy than expected and are now higher than the annual uplift recorded in September, indicating ongoing supply and demand pressures across the market.

Month-on-month rents reduced in every region of England during October, dropping by an average of 12%. This brings average rental costs down from September’s average of £1,447 to £1,276.

For tenants moving in October, this represents a significant annual saving of £2,052.

The largest reduction in rents was recorded in the South West, which saw prices drop by an eye-catching 24%. And the South East, Greater London and the East Midlands all saw rent reductions of over 10%. The smallest shifts were seen in the North West and the West Midlands, where rents reduced by a comparatively modest c.6%.

Despite the significant month-on-month drop in rents, such a decline remains in line with expectations and mirrors market movements in previous years. In 2024, rents dropped by 12.5% between September and October. And in 2023, an average reduction of 11.5% was recorded over the same time period.

At a year-on-year level however, rents are up by 3.1% – rising from £1,238 in October 2024 to £1,279 over the last month.

This is lower than the 4.6% year-on-year rental cost rise recorded in January this year. However, it is notably higher than year-on-year figures recorded in September, when rental inflation sat at 2%.

Annual rental inflation is currently the most notable in the North West, Greater London and the South East, where rents are up by over 4% compared to October last year.

Renters in the South West and West Midlands have been more shielded from rental rises, with year-on-year inflation sitting at less than 2% in October. And prices in the East Midlands are even down slightly compared to 2024 averages – with properties now costing £4 less per month, on average.

When rents drop, voids often lengthen – this proved true for October. On average, voids increased from 16 days in September to 21 days in October; an increase of 31%.

Void increases were seen in all regions with the exception of the West Midlands, where averages dropped by one day – from 24 days to 23.

Elsewhere, voids lengthened by over 50% in both Greater London and the South East. The most notable shift was in the North East, where voids almost doubled – rising from 12 days to 23.

In October 2024, void averages were slightly shorter – recorded at 19 days across England.

Renters signing new tenancies during October also reported higher average salaries than their September counterparts. Average salaries were up from £38,466 in September to £38,875 in October – a rise of £409 per year.

William Reeve, CEO of Goodlord, said, “This month’s figures present something of a paradox. On the one hand, we have a big drop in rents and associate lengthening of voids; exactly what we’d expect to see at this time of the year.

“But we’ve also recorded something of a reversal in the year-on-year rental inflation figures. Throughout 2025 to date, these figures have been fairly steadily reducing each month. However, the slight increase from 2% in September to 3% in October could indicate that we’re going into the quietest season for the market with a little more heat than usual.

“The year-on-year change is the metric to watch over the winter.”