In a notable upswing, average rents in England surged by 1.4% in May, reaching their highest levels since October 2023, according to the latest Goodlord Rental Index. The month-on-month increase has pushed the average rent to £1,183, up from April’s figure of £1,166.
This rise marks a significant peak in the rental market, with year-on-year rents escalating by 6.4%. The report highlights that the cost of renting a property has increased by £70 over the past year.
Significant Regional Variations
The West Midlands experienced the most substantial monthly increase, with rents climbing by 4%. The North West followed with a 2% rise, contributing to the overall national increase.
Voids Lengthen
The report also notes a lengthening of void periods across England, with the average void period extending to 21 days in May, up from 19 days in April. Greater London and the East Midlands saw the most significant increases in void lengths, each experiencing a 20% rise.
Expert Insights
William Reeve, Chief Executive of Goodlord, commented on the data, suggesting that the rental market might be gearing up for a season of escalating prices. “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,” Reeve stated.
Reeve noted that year-on-year rent increases have been consistently hovering around the 6-7% mark throughout 2024. He speculated that if this trend continues, the average rent could surpass £1,400 per month in the near future. Despite the rising costs, Reeve pointed out some signs of easing pressures, as indicated by the changes in void periods.
Looking Ahead
As the rental market enters its busiest season, all eyes will be on whether these upward trends continue. The Goodlord Rental Index will be closely watched for further developments and insights into the evolving rental landscape.
Source: Goodlord Rental Index May 2024