Rents in England dropped again in December, marking the fifth month of price reductions, according to the Goodlord Rental Index.
Rents fell nearly 2% month-on-month, bringing December averages to £1,185, 19% lower than the record high of £1,470, seen in July 2024.
Although December rents were down, they were still up over 3% from December 2023, indicating a slower pace of growth compared to earlier in 2024.
The South East recorded the highest year-on-year rent increase at 5.7%, while the North East had the smallest rise at just over 2%.
December’s year-on-year increase of 3.3% marked the lowest rate for 2024.
In contrast, August saw rents tracking 10% higher than in the previous year.
Average rents for new tenancies went down from £1,205 in November to £1,185 in December, a drop of 1.7%.
Additionally, void periods remained steady at 21 days on average, slightly longer than the 20 days recorded in December 2023.
The lowest rents in 2024 were recorded in January, at an average of £1,154.
Voids shortened in the West Midlands from 24 days in November to 18 days in December.
A small reduction was also seen in the North East, where voids went down from 23 days to 22 days, while voids lengthened in other regions.
William Reeve, CEO 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.”
Reeve added: “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.
He said: “And as we’ve seen throughout recent years, demand continues to outstrip supply across the rental market.
“So while 2024 was a huge year for lettings, 2025 has the potential to bring even more upheaval and change.”
