The average cost of rent in England hit £1,367 per property in July, the highest level ever recorded, Goodlord’s Rental Index has found.
This is 9.4% higher than the previous record, set in September 2022, of £1,249 – and highlights how it’s far gotten tougher for the UK’s renters in the past year.
Rents on tenancies completed in July rose by 10% year-on-year.
Goodlord experts believe the volume of larger, more expensive properties being let to groups of students in July ahead of the new academic year contributed to this rapid rise in average costs, as well as ongoing pressures to rental stock across the country.
William Reeve, chief executive of Goodlord, said: “This month’s numbers are quite staggering. In July we do usually expect to see an increase in rents and a reduction in voids – and all indicators pointed to a particularly red hot summer for the rental market, if not the weather. So while the 10% year-on-year increase is a big shift, the sharp drop in void periods is also particularly surprising.
“Digging into the data, we can see a large number of multiple occupancy student lets being confirmed during July, which has pushed up average prices in key regions such as the North East and South West.
“Traditionally, rental costs continue to increase until September before cooling off in the autumn, which could mean these aren’t the last records we’ll see broken before the year is out.”
Huge rental cost rises in the North West and South West
Between June and July there were significant uplifts in average rents in the North West, which saw a 48% rise in prices (£917 to £1,358), and the South West, which saw a 45% increase in average prices (£1,191 to £1,725).
In July, there were also significant rent increases in the East Midlands (21%) and the North East (25%).
Greater London, the South East and the West Midlands all saw more modest increases.
The West Midlands is currently the cheapest region for renters, with Greater London the most expensive.
Voids plunge to record low
As the cost of rent spiked, voids headed in the other direction: dropping by 44% to hit an average of just 9 days in July.
This is down from 16 days in June and is the lowest ever void rate recorded by the Index.
It suggests demand far outstripped supply in July, putting landlords in the driving seat compared to tenants.
