Rental prices surge across the country in June

Amid soaring temperatures, average rents in England heated up by 3.2% in June.

Related topics:  Finance,  Landlords,  PRS,  Rents
Property | Reporter
2nd July 2025
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"This could be an early indication that supply and demand is beginning to recalibrate, although the upcoming passing of the Renters’ Rights Bill, which is unpopular with landlords, could potentially spark a buy-to-let sell off that tips the balance back in the other direction"
- William Reeve - Goodlord

Rents increased nationwide in June, according to the latest Goodlord Rental Index. As the market approaches its busiest season, month-on-month rents climbed by over 3%, with the South West experiencing a particularly sharp rise. On average, rental prices are now 3.2% higher than they were a year ago. Voids shortened in most regions, reflecting stronger demand.

Biggest month-on-month rent rise so far this year

England’s average rent rose by 3.2% in June, marking the largest monthly increase recorded by the Index in 2025. The average rent went up from £1,226 in May to £1,265 in June, which amounts to a £39 increase per month or £468 annually.

This rise was not uniform across regions. Greater London, the North East, and the North West saw increases between 2% and 4%. Meanwhile, the South West experienced a dramatic 14% jump in rents. Interestingly, the region had also recorded a 14% month-on-month increase during June last year.

Two regions saw slight declines, with rents dropping just under 2% in both the East Midlands and West Midlands compared to May.

Year-on-year rent growth continues, but slows

The Index reveals a 3.2% rise in rents compared to June 2024, from £1,225 to £1,265. Every region except one saw year-on-year growth. Greater London led the gains, with rents up over 5%, followed by the South East, which saw a rise exceeding 4%.

However, the pace of year-on-year rent inflation has been slowing. June’s 3.2% increase marks the fourth straight month of declining annual growth:

3.7% in May 2025 compared to May 2024

4.2% in April 2025 compared to April 2024

4.6% in March 2025 compared to March 2024

While month-on-month rises continue to set new highs, these figures suggest the year-on-year increase in rents is moderating.

Voids shorten as rents climb

Voids, or periods when properties remain vacant, shortened across England in June alongside rising rents. The average void period dropped from 21 days in May to 20 days.

Last June, voids were even shorter at 17 days, indicating that the rental market might be moving toward a more balanced state over time.

“The data is showing us two really interesting forces at play, " explained Goodlord CEO William Reeve. "On the one hand, we’re seeing rents hotting up as we enter summer — all signs point to there being a new rental price record set this season. However, on the other hand, the narrowing of the year-on-year rental rises shows us that some of the long-term heat is starting to seep out of the system.

“This could be an early indication that supply and demand is beginning to recalibrate, although the upcoming passing of the Renters’ Rights Bill, which is unpopular with landlords, could potentially spark a buy-to-let sell off that tips the balance back in the other direction.”

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