The average cost of renting a property in England surged by 6.7% in June, reaching £1,225 compared to the same period last year, according to the latest Goodlord Rental Index. This uptick comes as the lettings market enters its traditionally busy season.
The South West experienced the steepest year-on-year increase, with rental prices soaring by 13.1% to £1,347. Meanwhile, London saw a more modest rise of 2.2%, yet this was enough to push average rents in the capital above £2,000 for the first time this year, hitting £2,010. Notably, this represents the smallest annual increase among the English regions.
“June typically marks the beginning of the high season for rental prices,” the report noted. “Boosted by demand from students, rents usually peak between June and September. Last year, rents peaked in July at an average of £1,367 per property.”
From May to June, average rents climbed by 4% month-on-month to £1,225, with only one region reporting a decrease. The South West recorded the highest monthly increase at 14%, followed by the North East and North West, both seeing a 4% rise.
Conversely, the West Midlands experienced a slight drop in average rental prices, edging down by 0.4%.
Void periods — the number of days a property remains vacant between tenancies — also decreased significantly in June. The average void period shortened to 17 days, down from 21 days in May. However, this was marginally longer than the 16-day average recorded in June of the previous year.
William Reeve, Chief Executive of Goodlord, commented, “There is a lot of discussion about whether the pace of rental price increases is starting to slow. The next three months, which typically see the annual peak in rents, will provide clarity on this debate.
“If the current trend of 6% to 7% year-on-year rent increases continues, we may see new records set across England. While the signs suggest this is possible, a significant jump in rents over the next four to eight weeks would be needed to surpass the 2023 averages. However, it is clear that market demand remains robust, continuing to drive rents up month-on-month.”