The latest data from the Goodlord Rental Index for September shows that the UK rental market is beginning to lose some of its post-pandemic heat. After a summer of record-breaking rents, September saw a 2% monthly drop in average rents across England, bringing the mean to £1,447 (down from £1,480 in August).
That said, on a year-on-year basis, rental prices nationally are still elevated: rents are 2.1% higher than in September 2024. However, the pace of rental inflation is clearly slowing. Earlier this year, rental growth was running at over 4% in many UK regions; now, Goodlord are reporting more modest increases or even small dips in some places.
The regional picture…
Whilst Goodlord reported a 7% dip in rents in the South West, the picture that we are seeing across the towns and villages of the South Cotswolds is one of greater stability, with rents holding up well. Our view remains that in the popular, sought after areas that we live and operate, well-priced, good quality properties remain in high demand.
Void periods – the time properties sit empty between tenancies – sits at 16 days on average nationally. Our experience is that most properties launched to rent are taken within two weeks, with some being let “off market” without being advertised. There are some exceptions of course, particularly with larger, more expensive properties where the market has certainly cooled.
Another encouraging sign from the Goodlord report is that average tenant salaries rose by 2.3% month-on-month, and are now about 3% higher than a year ago. This means tenants’ earning power is growing slightly faster than rents.
What this means for landlords and tenants
For landlords, the market is shifting into a steadier phase. While recent years have brought rapid rental growth, September’s figures point to rents stabilising in many regions. That makes it more important than ever to focus on reducing void periods, keeping properties competitive, and preparing for incoming regulatory changes from the imminent Renters’ Right Bill – including limits on how often rents can be raised.
For tenants, the picture is cautiously optimistic. Rents are no longer rising at the same pace, and in some regions are even declining. Combined with improving salaries, affordability is looking a little brighter than it did over the summer. However, the South Cotswolds, like in London, remains highly competitive, and void periods there are shrinking – a reminder that location still shapes the rental experience.
Overall, September’s numbers hint at a market finding its balance after a period of sharp increases – good news for tenants and a signal for landlords to adapt their strategies in a calmer, more competitive landscape.
To help you make the most of your rental investment, we are offering landlords a free, no-obligation rental valuation to give you an accurate picture of where your property stands in today’s market – and whether there is scope to increase your returns. Get in touch through our Property Valuation page or call 01666 338866.
* The Goodlord Rental Index tracks key figures for the private rented sector based on tenancies processed through the Goodlord platform, including average rents, void periods, and more. Details of the September 2025 figures are available at available to download here.
