Regardless of a slight month-on-month discount within the common price of lease throughout England, costs stay 2.9% greater year-on-year now standing at £1,480 per property per 30 days.
That is in response to the newest Goodlord Rental Index which additionally factors out that the £1,480 determine represents the second-highest rental price recorded for the reason that Index started in 2019.
At a regional degree, August noticed new information damaged, together with the best ever rental averages for the South East.
Within the South East, rents rose by an eye catching 11% – breaking the £1,600 barrier for the primary time.
And in Better London, costs had been up by over 5.5% – hitting £2,322. That is the second-highest common ever recorded for Better London.
One other space to see a pointy rental rise was the East Midlands, with costs up by over 4% in comparison with July.
Nevertheless, the North East, South West and the West Midlands noticed reductions within the common price of lease. The most important discount was recorded within the North West which, after an enormous rental spike in July, noticed costs cut back by a dramatic 20% in August.
Total, rents at the moment are up by 2.9% year-on-year representing an annual rental improve of £504 for tenants.
Nevertheless, in response to the Goodlord Index, this annual improve continues a development seen all year long: that the tempo of rental inflation is softening.
In distinction to August’s 2.9% determine, March recorded year-on-year lease rises of 4.6%. This means that 2026 may carry a leveling out of rental prices, the place month-to-month costs intently match averages set all through 2025.
The North West and Better London noticed the largest year-on-year rental rises, with will increase of 6.6% and 5.3% respectively.
Unusually, one area recorded a discount in year-on-year rental prices – albeit a really small one. The North East noticed a decline in common costs: dropping from £1,107 in August 2024 to £1,106 in August 2025.
Goodlord chief government William Reeve commented: “It’s been one other busy month for the market. While it was unlikely that we might see July’s common lease report damaged, the regional image throughout Better London, the South East and the East Midlands exhibits that we haven’t hit the rental worth ceiling simply but. We expect one other month of excessive rents in September, earlier than issues begin cooling off as we transfer into the autumn.”
He added: “The subsequent six months can be pivotal for the market; the tempo of lease inflation goes down and there are indications that offer and demand pressures are barely easing. Mix this with the disruption that the Renters’ Rights Invoice will carry, and potential tax modifications for landlords within the Funds within the autumn, and we’re in for a really attention-grabbing interval for the sector.”
