Despite a slight month-on-month reduction in the average cost of rent across England, prices remain 2.9% higher year-on-year now standing at £1,480 per property per month.
This is according to the latest Goodlord Rental Index which also points out that the £1,480 figure represents the second-highest rental cost recorded since the Index began in 2019.
At a regional level, August saw new records broken, including the highest ever rental averages for the South East.
In the South East, rents rose by an eye-catching 11% – breaking the £1,600 barrier for the first time.
And in Greater London, prices were up by over 5.5% – hitting £2,322. This is the second-highest average ever recorded for Greater London.
Another area to see a sharp rental rise was the East Midlands, with prices up by over 4% compared to July.
However, the North East, South West and the West Midlands saw reductions in the average cost of rent. The biggest reduction was recorded in the North West which, after a huge rental spike in July, saw prices reduce by a dramatic 20% in August.
Overall, rents are now up by 2.9% year-on-year representing an annual rental increase of £504 for tenants.
However, according to the Goodlord Index, this annual increase continues a trend seen throughout the year: that the pace of rental inflation is softening.
In contrast to August’s 2.9% figure, March recorded year-on-year rent rises of 4.6%. This indicates that 2026 could bring a leveling out of rental costs, where monthly prices closely match averages set throughout 2025.
The North West and Greater London saw the biggest year-on-year rental rises, with increases of 6.6% and 5.3% respectively.
Unusually, one region recorded a reduction in year-on-year rental costs – albeit a very small one. The North East saw a decline in average prices: dropping from £1,107 in August 2024 to £1,106 in August 2025.
Goodlord chief executive William Reeve commented: “It’s been another busy month for the market. Whilst it was unlikely that we would see July’s average rent record broken, the regional picture across Greater London, the South East and the East Midlands shows that we haven’t hit the rental price ceiling just yet. We are expecting another month of high rents in September, before things start cooling off as we move into the autumn.”
He added: “The next six months will be pivotal for the market; the pace of rent inflation is going down and there are indications that supply and demand pressures are slightly easing. Combine this with the disruption that the Renters’ Rights Bill will bring, and potential tax changes for landlords in the Budget in the autumn, and we’re in for a very interesting period for the sector.”
