Although the average rental cost throughout England is a little over a month, the price of £1,480 per month is still as high as 2.9 per cent.
This is according to the latest Goodlord rental index, which also notes that the £1,480 figure represents the second highest rental cost since the index began in 2019.
At the regional level, August saw new records, including the highest ever lease average in Southeast Asia.
In the southeast, rents rose by 11% – breaking the barrier of £1,600 for the first time.
In Greater London, prices rose 5.5% to £2,322. This is the second highest average ever in Greater London.
Another area that saw a sharp rise was the central eastern region, where prices rose by more than 4% compared to July.
However, average rental costs in the Northeast, Southwest and West Midlands have decreased. The biggest reduction was recorded in the Northwest, with prices dropping 20% in August after a huge rent surge in July.
Overall, rents are now up 2.9% year-on-year, representing tenants’ rents to increase by £504.
However, this year’s growth has continued for a year, according to the Goodlord Index: The pace of rental inflation is shrinking.
In contrast to the 2.9% figure in August, rents rose 4.6% year-on-year in March. This shows that 2026 can be upgraded from rental costs, with monthly prices closely matching the 2025 average.
Year-on-year rents in Northwest and Greater London increased by 6.6% and 5.3% respectively.
Unusually, a region has lower year-on-year rental costs – albeit small. Average prices in the Northeast fell: from £1,107 in August 2024 to £1,106 in August 2025.
Goodlord CEO William Reeve commented: “It’s another busy month in the market. While it’s unlikely that we’ll see a breakdown in average rental records in July, the regional pictures of Greater London, Southeast and Central Eastern regions show that we haven’t reached the rental price ceiling yet.
He added: “The next six months will be key to the market; the rate of rent inflation is declining, with signs that supply and demand pressures are eased slightly. Combining it with the disruption of renters’ rights bills and believing that potential tax changes for landlords in the Australian budget are a very interesting time for the sector.”
