Editor's note: This brief was summarised by The Property AI Team from a report by Property Industry Eye. Read the original article for full details.
Rents Keep Climbing But Void Periods Jump 40%: Warning Signs for Letting Agents
Average UK rents rose by 5% year-on-year in October, matching September's annual increase, but a sharp rise in void periods suggests the rental market may be losing momentum. The latest Goodlord Rental Index shows average monthly rents reached £1,592, up from £1,516 a year earlier.
That leaves tenants paying an extra £76 a month, or £912 annually. The increase remains above the wider UK inflation rate of 3.6%.
Rental Activity Slows
The latest figures also point to a slowdown in rental activity. Monthly rent growth eased from 0.9% in September to 0.6% in October, while average void periods jumped from 20 to 28 days — a 40% monthly increase. Voids were also longer than in October 2025, when the average stood at 21 days.
For letting agents and landlords, rising asking rents are not necessarily translating into faster lets. Longer void periods mean landlords face more time without rental income, even as advertised and agreed rents continue to rise.
North East Records Biggest Annual Rise
The North East recorded the biggest annual rent increase, with prices rising 14.2%. Average monthly rents climbed from £881 to £1,007, adding £126 a month to tenants' housing costs — an extra £1,512 a year.
Yorkshire and the Humber also saw a sharp increase, with rents up 8.7% annually. Across the nations, Wales recorded the strongest growth at 7%, followed by England at 5.7%. Scotland saw a smaller rise of 2.7%. The East of England was the only region to record an annual fall, with rents edging down 0.3%.
Monthly Growth Eases in Several Regions
Although rents increased in every region during October, the pace of growth eased in several areas. Yorkshire and the Humber recorded the largest monthly rise at 2.1%, followed by the North West at 1.2%. The North East saw monthly growth slow sharply from 5.6% in September to just 0.7% in October. The South West followed a similar pattern, with growth dropping from 2.5% to 0.4%.
On voids, Greater London recorded the shortest average void period at 25 days. Wales had the longest at 34 days, followed by Yorkshire and the Humber at 32 days. The North East experienced a particularly sharp change — after recording average voids of just 11 days in September, that figure climbed to 28 days in October.
Goodlord Blames Renters' Rights Act
William Reeve, chief executive of Goodlord, believes the Renters' Rights Act is contributing to rental inflation. "The headline figures this month haven't changed: rental inflation continues apace and the market is putting the squeeze on tenant incomes," he said. "As predicted, we believe that this rental inflation is an unintended consequence of the Renters' Rights Act; factors including the ban on over-bidding and annual rent reviews are combining to push up rents, compounded by continuing constraints on supply."
The Rental Index does not establish a direct causal link between the legislation and higher rents. The reforms took effect in England in May, while Goodlord's UK-wide figures also include Scotland and Wales, where different rental rules apply.
Source: Property Industry Eye