Despite a slight month-on-month discount within the common value of hire throughout England, costs stay 2.9% larger year-on-year now standing at £1,480 per property monthly.
This is based on the newest Goodlord Rental Index which additionally factors out that the £1,480 determine represents the second-highest rental value recorded because the Index started in 2019.
At a regional stage, August noticed new records damaged, together with the best ever rental averages for the South East.
In the South East, rents rose by an attention grabbing 11% – breaking the £1,600 barrier for the primary time.
And in Greater London, costs have been up by over 5.5% – hitting £2,322. This is the second-highest common ever recorded for Greater London.
Another space to see a pointy rental rise was the East Midlands, with costs up by over 4% in comparison with July.
However, the North East, South West and the West Midlands noticed reductions within the common value of hire. The greatest discount was recorded within the North West which, after an enormous rental spike in July, noticed costs scale back by a dramatic 20% in August.
Overall, rents are actually up by 2.9% year-on-year representing an annual rental improve of £504 for tenants.
However, based on 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 hire rises of 4.6%. This signifies that 2026 may deliver a leveling out of rental prices, the place month-to-month costs carefully match averages set all through 2025.
The North West and Greater London noticed the most important 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. Whilst it was unlikely that we might see July’s common hire file damaged, the regional image throughout Greater 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 high rents in September, earlier than issues begin cooling off as we transfer into the autumn.”
He added: “The subsequent six months will likely be pivotal for the market; the tempo of hire inflation goes down and there are indications that provide and demand pressures are barely easing. Combine this with the disruption that the Renters’ Rights Bill will deliver, and potential tax adjustments for landlords within the Budget within the autumn, and we’re in for a really attention-grabbing interval for the sector.”
