Voids have lengthened to their longest average recorded since April 2021.
The latest data released by Goodlord has revealed that overall, rents were up by 4.6% year-on-year in January 2025, ending the month at £1,207 per property, on average. This is up from the £1,154 recorded a year ago, in January 2024.
This 4.6% boost is an acceleration in the pace of annual rent rises compared to recent months. In December, the Index recorded a more modest 3.3% year-on-year rise.
The biggest year-on-year rise in rents was found in the North East, where average costs have increased by more than 8% since January last year. The smallest change was recorded in the East Midlands, where prices have only increased by 1%.
Month-on-month rents rise in line with expectations
Looking at month-on-month figures, rents across England rose from £1,185 in December to £1,207 in January - an increase of almost 2%.
This is the fifth consecutive year when rents have risen between December and January.
The highest rents continue to be found in London, where average confirmed prices now sit at £2,044 per month - up 3% since December. The lowest prices can be found in the North East, with monthly costs sitting at £911 on average, up 5% month-on-month.
The only region to record a reduction in rents during January was the South East, which saw a marginal -0.6% reduction in average costs.
Confirmed rental prices significantly undercut advertised prices
Despite January bringing a month-on-month and year-on-year rise in average prices, the true cost of rent continues to undercut advertised prices.
A new analysis by Goodlord compared the advertised rental averages published as part of the Rightmove Rental Price Tracker with the confirmed rental prices monitored by Goodlord. This has shown that the average confirmed cost per property during the last quarter of 2024 could be up to 20% cheaper than advertised costs for tenants outside of London, and 24% cheaper for tenants renting in London.
According to Rightmove, advertised prices in Q4 2024 were £1,341 per month outside of London and £2,695 in London. According to Goodlord, the confirmed price of tenancies signed in Q4 2024 was £1,070 per month outside of London and £2,046 in London, on average. These prices are 20% and 24% lower respectively.
The findings provide an indication that landlords may be advertising properties at higher rates which tenants are then successfully negotiating down.
Voids hit highs not seen since 2021
Despite the increase in rents, voids lengthened in January - going from 21 days in December to 24 days in January. This points to a softening of demand in the market.
Voids are typically their longest in January when the market is quiet. However, this is the longest average void period recorded by the Index since April 2021 - making this the highest period for voids in almost 4 years.
The biggest increase in voids was recorded in the West Midlands, where averages lengthened from 18 days to 23 - a rise of 28%.
The only region to not record a rise in voids was the South East, which held steady at 22 days. Conversely, this was also the only region to record a reduction in average rents.
“There’s a lot to analyse in this month’s Rental Index. On the face of it, you have another month of rising rents and a rebound in the pace of year-on-year increases. But when you dig a little deeper you can see that the void periods are at their highest since 2021 and confirmed rents are meaningfully undercutting advertised prices," comments Goodlord CEO, William Reeve, "It’s a picture of a market that continues to be buffeted by supply and demand issues, but that could be teetering its way towards stabilising. We are definitely seeing a softening in the market.
He adds, “Whilst we predict that confirmed rental prices will continue to rise this year, particularly over the summer, wider indices imply it’s unlikely 2025 will bring the major rise in year-on-year figures we saw last year.”