Renters’ Rights Bill could make rental market less predictable – Goodlord

A firm has warned of a less predictable rental market ahead of the Renters’ Rights Bill becoming law.

Goodlord’s latest Rental Index shows the market cooled in September after a record-breaking summer.

While rents typically fall at this time of year, Goodlord warns the trend could change in the future with the Renters’ Rights Bill.

New factors will undoubtedly impact the market

Across England, average rents fell by 2% in September, dropping from £1,480 in August to £1,447. The steepest regional declines were in the North East and East Midlands, where rents fell by 8%, followed by a 7% fall in the South West.

William Reeve, chief executive at Goodlord, said: “As predicted, this month’s data shows the first signs of a market cooling off following an intense summer of record-breaking rents. Prices are down over the previous month and annual rental inflation also continues to slow. Together, along with lengthening voids, these numbers indicate a lettings market starting to slow down for winter.

“However, with the Renter’s Rights Bill now just weeks away from becoming law, a large number of new variables are able to hit the market; from bans on tenants over-bidding, to the ability for landlords to increase rents just once a year. These new factors will undoubtedly impact the market, meaning a new era of less predictable market patterns could soon be upon us.”

Voids are slightly longer than they were at the same point last year

According to the data, voids lengthened in September. Average void periods, the time a property sits vacant between tenancies, rose to 16 days across England, up from 15 days in August.

This also means voids are slightly longer than they were at the same point last year. In September 2024, the average stood at 15 days.

Only two regions recorded shorter void periods in September. In Greater London, voids fell from 12 days to 10, while in the North West they dropped from 21 days to 17, a 19% reduction.

The data also shows tenants received a salary boost in September. Average salaries rose from £37,584 in August to £38,466, which is also 3% higher year-on-year compared to September 2024.

Goodlord says this means salary growth is currently modestly outpacing both monthly and annual rental cost rises across the UK.