Rents keep rising but salaries stay ahead, claims Goodlord

Rents continue to rise, but year-on-year salary increases continue to outstrip the rising cost of rent, says Goodlord.

The technology firm’s latest rental index reveals rents rose for the fourth month in a row during April, with average prices now more than 4% higher than this time last year.

Goodlord also warns that rents could spike further over the summer as demand typically surges during the warmer months.

Salary increases continue to outstrip cost of renting

According to Goodlord, in April 2025, the average rent per property in England was £1,216. This is 4.2% higher than April 2024’s figure of £1,166.

This equates to a year-on-year increase of £50 per month (or £600 per year) for tenants. However, April’s year-on-year rise of 4.2% is slightly lower than March’s figure of 4.6%.

At a regional level, the North West, South East, and West Midlands saw the biggest jumps, with rents rising by more than 5% year-on-year. The East Midlands, meanwhile, saw a far smaller increase of under 1%.

Despite rising rents, Goodlord reports that year-on-year salary increases continue to outstrip the rising cost of rent.

The average salary of a renter signing a new tenancy agreement in April 2025 was £38,629 – 4.94% higher than April 2024’s average of £36,810.

Summer will bring a rental spike across the country

William Reeve, chief executive officer, of Goodlord predicts the summer could see a spike in rents.

He said: “It’s been another month of steadily increasing rents, at a time of the year when we often see more ups and downs in terms of rental averages.

“This continues to underscore the prediction that this summer will bring a rental spike across the country, although rising salaries will be offsetting this impact for tenants to some degree.”

Void periods hold steady

Elsewhere in Goodlord’s rental index, void periods hold steady as demand remains strong.

The index reveals that voids remain unchanged during April at 21 days, indicating consistent demand across the market.

However, the current void length of 21 days is slightly higher year-on-year. In April 2024, voids sat at 19 days.

Greater London is recording the shortest voids currently, with properties changing hands in just 16 days on average. The longest voids are seen in the East Midlands, at the significantly higher figure of 28 days.

Mr Reeve adds: “Whilst the regional picture is nuanced when it comes to voids, the national averages highlight steady demand from tenants for new properties as we hurtle towards the busiest months on the lettings calendar.”

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