Rental prices across England surged for a fifth consecutive month in May, according to the latest Goodlord Rental Index, marking the highest average rent levels since October 2024.
The average monthly rent now stands at £1,226, a figure reflecting both sustained demand and seasonal pressure as the market heads into its typically active summer period. The upward trajectory offers landlords strong returns—but raises growing concerns over tenant affordability.
“Rents jumped again in May,” confirmed William Reeve, CEO of Goodlord. “The way the numbers are currently looking suggests that this year will be no exception [to the usual seasonal peak] and that a range of new rental records will be set in the coming months.”
North East and East Midlands Post Strongest Gains
Nearly every region saw rental growth last month, with the North East leading the pack with a 2.2% rise, followed by the East Midlands at 1.8%. Even long-saturated markets like Greater London and the South East continued to edge upward.
The South West was the lone outlier, where rents dipped slightly by 0.6%. Analysts attribute the drop to an early influx of rental stock ahead of the summer rush, rather than weakening demand.
On an annual basis, rents are now 3.7% higher than in May 2024—equating to more than £500 in additional costs per tenancy. While still notable, this marks a slight easing from earlier in the year, when annual increases hit 4.2% in April and 4.6% in March.
“Price rises continue to be significant,” Reeve noted, “but the softening of year-on-year increases… could indicate a slight easing of the demand and supply imbalances in some regions.”
Void Periods Steady, but Local Disparities Emerge
Nationally, the average void period—how long a property sits empty between tenants—held steady at 21 days for the third straight month. However, regional data painted a more uneven picture.
Landlords in the East Midlands, North West, South East, and South West saw shorter voids as properties were snapped up quickly. In contrast, voids in the West Midlands surged by 53%, and Greater London recorded a 19% increase, highlighting possible affordability pressures or shifting tenant dynamics in higher-priced urban markets.
Tenant Incomes Slip, Widening Affordability Gap
May also saw a dip in tenant earnings, with average incomes falling 2.5% month-on-month to £37,676. Despite representing a 1.57% rise from May 2024, income growth continues to lag behind rent increases.
The sharpest income drops were recorded in the North West (down 9.7%) and East Midlands (down 7.5%). Greater London and the North East were the only regions to register slight wage growth.
Still, demand for rentals remains high, even as income pressures mount.
“Ongoing supply issues coupled with landlord jitters ahead of the Renters’ Rights Bill means that rents remain on track to rise for the foreseeable,” warned Reeve.
With a heated summer market on the horizon, the coming months may well set new benchmarks—for both rents and the strain on tenant budgets.