Rent in England’s rents hit a new high in July with the average monthly rent for new tenancies climbing to £1,496, surpassing the previous record of £1,470 set in July 2024.
The data from the Goodlord Rental Index, reflects a staggering 18.3% month-on-month surge from June, driven by seasonal demand.
The summer months typically see heightened activity in the PRS, as students transition between lets, graduates relocate to urban centres, and families secure homes before the school year begins. This year, the trend was amplified by a post-pandemic pattern established in 2020, when lockdown restrictions halted market movement, leading to a concentrated wave of tenancy expirations in June and July.
The firm’s chief executive, William Reeve, said “throughout the year the data has been pointing to two clear trends: firstly, that we were likely to see new rental records set over the summer and secondly; that the year-on-year pace of price increases overall is starting to slow. This month’s figures show both predictions coming to pass. Across six years of operating the Index, we’ve never recorded a higher monthly rental average. Likewise, every month of 2025 has brought a softening of year-on-year rent inflation. So, whilst the market continues to operate under intense pressure, the late autumn could bring something more predictable in terms of rents and voids.”
Regionally, the North West experienced the steepest climb, with rents soaring by 42%, followed by the South West at 34% and the North East at 27%.
Greater London saw the smallest increase at 4%, with the South East close behind at 6%.
For tenants securing new properties in July, this translates to an extra £231 per month, or £2,772 annually, compared to June.
Year-on-year rental inflation has been declining throughout 2025, with July’s 1.8% increase significantly lower than February’s 4%.
However, regional variations persist: the East Midlands and South West saw slight declines of 1% and 1.6%, respectively.
Greater London and the West Midlands faced rises of nearly 5% and more than 6%.
The intense tenant demand also reduced void periods, which dropped from 20 days in June to 12 days in July, a 40% reduction.
Landlords in the North West saw the most dramatic shift, with voids plummeting from 22 days to just 5, a 77% fall.
The North East followed with a 65% reduction, while Greater London recorded a modest drop from 16 days to 14, Goodlord reports.
Homelet Index says rents up seventh month in a row
Shrinking availability and sustained tenant demand has pushed up rents for the seventh consecutive month.
The latest HomeLet Rental Index shows that average UK rents increased to £1,313 in July 2025, up 0.4% month-on-month.
The index says that this ongoing trend reflects the pressure building within the private rental sector, where demand continues to outpace supply.
Rents outside of London rose in line with the national average, reaching £1,132, an increase of 0.4% month-on-month and 1.7% annually. While overall growth remains steady, several regions posted more significant changes.
Will Eastman, head of legal at HomeLet and Let Alliance, said “rental prices continue to edge upwards, and market uncertainty appears to be playing a role. Legislative reform, rising costs, and shifting risk factors are prompting some landlords to reconsider their long-term plans, which could impact the supply of rental homes. The proposed Renters’ Rights Bill is one of several changes that, while well-intentioned, may inadvertently reduce confidence among some landlords. The Renters’ Rights Bill could have knock-on effects that are detrimental for all parties. Although some landlords may choose to leave the sector, many are instead exploring alternative ways to manage risk. Rent Guarantee Insurance, for example, is becoming more popular as a way for landlords to protect their rental income as they look for stability in an evolving market.”
Key Data from the July 2025 HomeLet Rental Index:
- Average UK rent: £1,313 (+0.4% MoM, +0.4% YoY)
- UK excluding London: £1,132 (+0.4% MoM, +1.7% YoY)
- Largest monthly increases:
o Scotland: +2.1%
o Wales: +1.6%
o North East: +1.2%
- Annual changes:
o Yorkshire & Humberside: +4.5% growth
o Greater London: -0.9% YoY
o North West and West Midlands: + 2.3% YoY
“Despite rent decreases in a few regions, the overall trend across the UK remains upward. Pressure on supply, potentially influenced by landlords reassessing their portfolios, continues to shape rental market dynamics in 2025” says HomeLet.