Rents remained sky high throughout August
After breaking records in July, rents remained inflated in August – topping the £1,400 threshold for the second month in a row, according to new research from the Goodlord Rental Index.
Experts found that the average rent for a property in August in England was £1,438, which is slightly lower than the record figure of £1,470 in July. However, year-on-year, rents have increased by almost 7%.
Areas that have been the most affected include the South West, where average rents are up by 13% compared to 2023, the East Midlands and the North East, with both regions seeing an increase of over 9%.
In contrast, the West Midlands and Greater London have continued to see the smallest year-on-year rent increase, with jumps of just 2-3% in average costs.
‘Rental cost figures from the last two months closely mirror the trends we saw in 2023; a big surge upwards in July, with August figures dipping slightly but staying very high overall,’ William Reeve, CEO of Goodlord said. ‘Rents are now up 7% year-on-year, but salaries have only recorded a 1% uplift across the same time period: this is really putting the squeeze on tenants, with many likely to be facing affordability issues when they come to renew or take out a new lease.’
Reeve continued: ‘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.’
On the topic of incomes, the Index recorded that tenants signing new housing contracts in August experienced a reduction in salaries. In July, individuals were earning an average £38,086 per year, but in August this dropped to £36,719 – a reduction of 3.6% month-on-month.
Meanwhile, the majority of regions in England – bar one (Greater London) – saw properties sit vacant for longer periods between lets. This is otherwise known as ‘void’ periods.
The research found that void periods increased from 11 days in July to 15 days in August – an increase of 36%. This is also slightly higher than the number recorded in August last year, which stood at 13 days.
Image: Ethan Wilkinson
Cost of Rent Day: How much do Londoner’s really need to earn?
