The average rent for a property in England in August stood at £1,438, a slight decrease from the record high of £1,470 observed in July, according to the latest Goodlord Rental Index. Despite this modest decline, rents remain elevated, with the August figure marking only the second time that the average rent has exceeded £1,400.
Year-on-year, rents have surged nearly 7%, outpacing wage growth. The average salary for tenants signing new leases in August rose by just 0.9% to £36,719, highlighting the increasing financial pressure on renters.
The report noted: “Despite this reduction, prices in August 2024 remained above the £1,400 threshold for only the second month on record, after the barrier was breached for the first time in July.”
Regional data revealed significant variations in rent increases. The South West led the way with a 13% jump in average rents, reaching £1,751 compared to the previous year. The East Midlands and the North East both saw increases of 9.1%, with average rents rising to £1,234 and £1,107, respectively. In Greater London, rents climbed by 2.8% over the year, now averaging £2,206.
The report also highlighted a notable rise in void periods — the time a property remains vacant between tenancies. Nationwide, void periods extended from 11 days in July to 15 days in August, a 36% increase. This is slightly above the 13-day average recorded in August 2023. Greater London was the sole region to buck this trend, with void periods shortening from 13 days to 12 days.
William Reeve, chief executive of Goodlord, commented on the figures, saying, “With interest rates starting to drop and tenant incomes failing to keep pace with rents, there’s a strong argument that we may be nearing a sustainability ceiling on the cost of rent. If they escalate any further, prices will prove simply unaffordable for renters — unlocking a challenging new chapter in the housing crunch.”