News
Rents hit new six month high with levels not seen since October
Monday 3rd June 2024
The Negotiator - Robyn Hall
Average rents went up by 1.4% during May, hitting the highest levels seen since October with year-on-year rents for up 6.4%, the latest Goodlord Rental Index reveals.
Rents across England rose by over 1% between April and May with the average cost of a rental property in England now £1,183. This is a rise of 1.4% compared to April’s figure of £1,166 and also the highest rent average recorded since October 2023 when rents on new tenancies were £1,190 per month.
BIGGEST CHANGE
The biggest month-on-month change was recorded in the West Midlands where rents rose by 4%, followed by the North West which recorded a 2% rise.
Year-on-year, average rents in May increased by 6.4% – consistent with the year-on-year rent rises seen throughout 2024 to date and pushing up the cost of renting a property up by £70 since this time last year.
Meanwhile, voids across England lengthened during May, hitting an average of 21 days – a rise of two days from April’s average of 19 days.
During May, the biggest shift in void periods was seen in Greater London and the East Midlands with both areas seeing a 20% increase in void lengths.
PRICE ESCALATIONS
William Reeve, Chief Executive of Goodlord, says: “This month’s data may well have signalled the starting gun on summer price escalations. The coming months are traditionally the busiest season for the rental market and the time when rents peak.
“During 2024 so far, year-on-year rent rises have been fairly consistent – hovering around the +6-7% mark.”
He adds: “Rental averages broke the £1,350 per month barrier for the first time in the summer of 2023. That means, if this 6-7% year-on-year trend continues, we could be seeing our first £1,400+ rental average being recorded in just a few months’ time. However, while rents continue to outpace both inflation and earnings, there are some signs of pressures easing, as seen in the void figures.”
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