After months of surging rents, England’s rental market is showing early signs of correction. 

September data from a trade body reveals a 2% drop in average rents, with notable regional declines in the North East and East Midlands (both down 8%) and the South West (down 7%). 

Extended void periods point to cooling demand, yet landlords warn that proposed legal reforms may destabilize the sector just as it begins to rebalance.

While most regions saw rents fall and void periods lengthen, Greater London stood apart with a 6% rise—driven by demand from students and recent graduates. The West Midlands also posted a modest 1% increase. 

Across England, average voids crept up from 15 to 16 days, signalling slower tenant turnover. Exceptions included London, where voids shortened from 12 to 10 days, and the North West, which saw a notable improvement from 21 to 17 days.

Karen Slater, a Sheffield landlord managing five central flats, welcomed the shift “After a frantic summer, a calmer market lets us plan maintenance and keep good tenants rather than rushing to fill properties.”

Annual Rent Growth decelerates across most regions and England’s rental market is showing signs of moderation, with annual rent inflation slowing to 2.1%—less than half the rate seen in January. The South East recorded a slight year-on-year decline of 0.6%, while Greater London led the pack with a 3.8% rise. The West Midlands followed with a more restrained 1.4% increase.

The rental sector may be entering a more sustainable phase, as tenant earnings begin to outpace rent hikes. Renters entering new contracts now earn an average of £38,466—marking a 2.3% monthly increase and 3% annual growth. A trade body representative highlighted the shift as a sign of improving affordability: The first signs of a market cooling off are clear,” he said, “but new legislation could bring unpredictable patterns.”

The Renter’s Rights Bill, nearing approval, aims to restrict rent increases to once per year and prohibit tenant bidding wars—policies designed to protect renters but viewed by many landlords as limiting market responsiveness. 

Although autumn often brings a natural cooling in demand, this year’s deceleration aligns with Westminster’s push for reform. If the bill introduces new compliance costs and curbs rent flexibility, it could dampen investment appetite just as inflation begins to stabilise.