Rental market enters its “winter cool down”

Annual rental growth remained at 5% in October and slowed on a monthly basis in a sign that the market is entering its “winter cool down,” says Goodlord.

The lettings platform’s latest Rental Index shows annual rental growth remains above inflation but monthly growth slowed from 0.9% in September to 0.6% in October.

In October 2025, average rents were £1,516 a property. Last month, this had risen to £1,592, according to the index.

Wales saw the sharpest annual rise – with rents up 7% in a year. In England, rents were up by 5.7%. Scotland posted the most modest rental inflation, with year-on-year prices up by 2.7%.

As predicted, we believe that this rental inflation is an unintended consequence of the Renters’ Rights Act.”

At a regional level, all regions recorded a year-on-year increase in rents with the exception of the East of England, which saw a marginal (0.3%) decline.

The North East once again recorded the most eye-catching increase, with rents up 14.2% year-on-year. Rental averages in the region were £881 this time last year, compared to £1,007 today, an increase of £1,512 per year for tenants in the North East.

Yorkshire and the Humber also recorded a significant increase. Annual rent growth in the region was up by 8.7%.

Rents still rose on a monthly basis every region monitored.

Yorkshire and the Humber recorded the biggest rise at 2.1%, reversing last month’s dip. It was followed by the North West at 1.2%, though this was well below the 3.1% month-on-month increase recorded in the region in September.

The sharpest slowdowns were in the regions that led the way last month. The North East, which jumped 5.6% in September, rose by just 0.7%, while the South West slowed to 0.4%, down from 2.5%.

Winter cool down

Despite buoyant rental figures, a nod towards the coming winter cool down can be seen in the market’s void periods during October, Goodlord says.

The average void period in October was 28 days, up from the 20 days recorded in September. This is also much higher than the same time last year, when voids hit 21 days.

Greater London recorded the shortest voids, at 25 days on average. The longest were in Wales, where properties sat vacant between tenancies for 34 days on average, followed by Yorkshire and the Humber at 32 days. The North East, which recorded spiking rents and void periods of just 11 days in September, saw voids lengthen to 28 days.

William Reeve (pictured), Chief Executive of Goodlord, says: “The headline figures this month haven’t changed: rental inflation continues apace and the market is putting the squeeze on tenant incomes.

“As predicted, we believe that this rental inflation is an unintended consequence of the Renters’ Rights Act; factors including the ban on over-bidding and annual rent reviews are combining to push up rents, compounded by continuing constraints on supply.

“However, the underlying metrics point to the likelihood of a cooler few months ahead, as month-on-month price rises lose some of their heat and voids start to lengthen. The winter is often the slowest period of the year for the lettings market, although this seasonal predictability has been clouded by a range of impacting factors over the last year, namely the introduction of the Renters’ Rights Act. It means we can’t take anything for granted this early in the season.”