Rent costs hit a new six month high, research shows
The latest figures from Goodlord, an award-winning lettings platform, show rent costs have reached their highest level within the last month since October 2023.
Experts found between April and May 2024, rent costs across the country rose by over 1% and are now 6% higher year-on-year. According to the data, the average cost of a rental property in England is now £1,183 – this is a rise of 1.4% compared to April’s figure of £1,166. What’s more, the increase is the highest rent average recorded since October 2023, when rents on new tenancies were £1,190 per month.
Against this backdrop, costs in the West Midlands experienced the biggest month-on-month change. In this region rents soared by 4%. Following closely behind was the North West, which recorded a 2% increase.
It is thought that with the temperature rising rents may be heading into their seasonal summer upswing.
‘The coming months are traditionally the busiest season for the rental market and the time when rents peak,’ said William Reeve, CEO of Goodlord. ‘During 2024 so far, year-on-year rent rises have been fairly consistent – hovering around the 6% to 7% mark.’
William added: ‘Rental averages broke the £1,350 per month barrier for the first time in the summer of 2023.
‘That means, if this 6% to 7% year-on-year trend continues, we could be seeing our first £1,400+ rental average being recorded in just a few months time.
‘However, while rents continue to outpace both inflation and earnings, there are some signs of pressures easing, as seen in the void figures.’
The research from Goodlord highlighted that the average voidage, which is how long a property is vacant between tenancies, was 11% higher than at the same time last year, suggesting a slight lessening of the imbalance between demand and supply. 12 months prior, in May 2023, average voids were around 19 days.
Although, last month the biggest shift in void periods was experienced in Greater London and the East Midlands – both areas saw a 20% increase.
Recent news from Goodlord’s rental index shows that although the hiked up rent prices aren’t ideal for people’s budgets, they are welcomed by landlords. Costs have increased by 28% since March 2020 – just before England was put into lockdown – suggesting the market is slowly improving.
Image: Ethan Wilkinson
