New renters in London pay record-breaking £2,201

Yahoo

06-08-2025

New tenants have never paid so much rent in England, with the average cost in July hitting a record-breaking £1,496, according to figures from Goodlord.
This new peak surpasses the previous record set in July 2024, when the average was £1,470. In Greater London, the average rent on a new tenancy surged 4% to £2,201, the highest anywhere in England.
July is traditionally one of the busiest months for the rental market, with demand driven up by student lets changing hands, graduates moving to new cities, and families looking to secure a home before the new school term.
July's average cost of £1,496 marks a new rental record, the highest average recorded since the Goodlord Rental Index began in January 2019. Month-on-month rents rose by 18.3% compared with June.
On a regional basis, the cost of rent in the North West jumped by 42%, while South West residents saw 34% increases in average rents and those in the North East faced a rise of 27%.
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Overall, renters in England who secured new properties in July are paying £231 per month – or £2,772 a year – more than renters who secured a new tenancy in June.
The demand surge has been further amplified by the post-pandemic market recovery, which has led to more tenants seeking new properties during the summer months as COVID-19 restrictions ease.
Goodlord 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.'
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The void period, the time a property remains vacant between tenancies, has also seen a significant drop in July, as demand continues to outpace supply. The average void period shrank by 40%, from 20 days in June to just 12 days in July. This represents a marked improvement from last year, when voids averaged 11 days in July.
In the North West, where rental prices surged by 42%, voids dropped by an astonishing 77%, from 22 days to just five. The North East saw similar trends, with voids decreasing by 65%, from 20 days to just 7. Meanwhile, Greater London had a more modest decline, with voids down from 16 to 14 days.
The Goodlord Index tracks contracted tenancy prices rather than advertised rates, is based on thousands of rental contracts processed monthly by Goodlord on behalf of more than 3,500 letting agents.