Rents in England dipped by 1.7% in December to bring the average 19% lower than in July, Goodlord’s Rental Index has revealed.
They dropped from £1,470 in July to £1,185 in December.
William Reeve, chief executive of Goodlord, said: “After the fireworks of the summer, the rental market ended the year in a far more subdued fashion.
“We’ve now seen five months of decreasing prices and year-on-year rental averages are currently tracking far lower than figures seen during 2024 as a whole, although this should be viewed in the context of the record breaking highs set during July and August.
“I also believe this could be the calm before the storm and that rents will see another major spike in 2025.
“With the introduction of the Renters’ Rights Bill, bidding wars will be outlawed, meaning asking prices are likely to be set that bit higher.
“Likewise, the new compliance requirements landlords must meet will also drive up costs, some of which could be passed on to tenants.
“And as we’ve seen throughout recent years, demand continues to outstrip supply across the rental market. So whilst 2024 was a huge year for lettings, 2025 has the potential to bring even more upheaval and change.”
Rents for December are still up by 3.3% year-on-year.
The biggest year-on-year change was recorded in the South East, which ended the year with rents up by 5.7% compared to December 2023.
The smallest change was seen in the North East, with rents up by just over 2% year-on-year.
