Soaring rent prices reach a fresh six-month peak, according to newly published data
Rent Prices in England and the UK: July 2025 Update
Rent prices in England and the UK have seen a modest increase over the past year, according to data from HomeLet. As of July 2025, the average monthly rent for new tenancies in England, excluding London, stands at approximately £1,132, marking a year-on-year increase of about 1.7%. Including London, the UK average rent is higher at £1,313 per month, although London rents have slightly decreased by 0.9% year-on-year to an average of £2,083 per month.
Regional variations within England are noticeable. The North East is the cheapest area, with average rents around £701 per month, slightly up by 0.1% year-on-year but increased by 1.1% monthly. Yorkshire & Humberside has seen the largest annual rent growth, up 4.5% year-on-year to about £920 per month. In contrast, the East Midlands experienced a small annual decrease in rents, falling by about -0.9% monthly but still 0.8% higher than last year, with rents around £896.
Alternative sources, such as Rightmove, have reported slightly different figures. Rightmove noted a higher average asking rent outside London of £1,365 in Q2 2025, with a 3.9% annual rise in rents outside London, and a 1.9% annual rise in London rents. This difference may reflect variations between asking rents (Rightmove) and actual new tenancy rents recorded by HomeLet.
Forecasts suggest that rental prices in the UK, including England, could continue rising, with an anticipated cumulative increase of nearly 18% by 2029 and around 8% growth expected in 2024 alone.
Rent costs in the UK have reached their highest level within the last month since October 2023. Between April and May 2024, rent costs across the country rose by over 1%. If the 6% to 7% year-on-year trend continues, the first £1,400+ rental average could be recorded in just a few months. The increase in costs for landlords suggests that the rental market is slowly improving.
The average voidage, or the length of time a property is vacant between tenancies, has increased by 11% compared to the same time last year. William Reeve, CEO of Goodlord, stated that the coming months are traditionally the busiest season for the rental market and the time when rents peak.
The increase in rent average is the highest recorded since October 2023, when rents on new tenancies were £1,190 per month. Costs for landlords have increased by 28% since March 2020, just before England was put into lockdown. In May 2023, average voids were approximately 19 days. During 2024 so far, year-on-year rent rises have been fairly consistent, hovering around the 6% to 7% mark.
The Scottish housing bill could create new rent control areas, potentially impacting the rental market in Scotland. In the West Midlands, rents soared by 4% month-on-month, experiencing the biggest change. Last month, the biggest shift in void periods was experienced in Greater London and the East Midlands, both areas saw a 20% increase in void periods.
Recent news from Goodlord's rental index shows that rent increases, while not ideal for people's budgets, are welcomed by landlords. The North West recorded a 2% increase in rent costs. There are no specific images mentioned in the paragraph. No additional links or topics are provided in the paragraph.
Investing in real-estate business, particularly in areas like Yorkshire & Humberside, could prove lucrative due to the significant 4.5% year-on-year growth in rents. The predicted 18% increase in rental prices by 2029 in the UK, including England, suggests a potential opportunity for financiers in the housing sector.
The prospect of new rent control areas in Scotland, as per the Scottish housing bill, may impact the government's approach towards housing finance and investing in real-estate within the region.
