Rents in England continue to rise, with the average cost of a rental property now £1,225 per month. That’s a hefty 6.7% increase compared to this time last year, according to the latest Goodlord Rental Index.
Summer Rental Surge
June typically marks the beginning of the “high season” for the rental market. Why? Because students are on the move, desperately searching for accommodation before the new academic year begins. This surge in demand typically pushes rents to their peak between June and September.
Last year, the average rent peaked at £1,367 in July. Will this year be even hotter?
Regional Rental Roundup
The South West takes the crown for the highest year-on-year rent increase, with a staggering 13.1% jump. Landlords in this region are now commanding an average of £1,347 per property.
London, despite experiencing a more modest 2.2% rise, has smashed through the £2,000 per month barrier. This means renting in the capital will now set you back an eye-watering £2,010 on average.
Month-on-Month Momentum
Looking at the short-term trends, average rents in England shot up by 4% between May and June 2023 alone. This upward trend was mirrored in almost every region, with the South West again leading the pack with a 14% monthly increase. The North East and North West followed closely behind, both boasting a 4% rise.
However, it wasn’t all sunshine and roses for landlords. The West Midlands experienced a slight dip in average rents, edging down by a marginal 0.4%.
Void Periods Shrink
The good news is that void periods – the dreaded time your property sits empty between tenants – significantly decreased in June. The average void period last month was just 17 days, down from 21 days in May. However, this is still slightly longer than the 16-day average recorded in June last year.
Expert Insights
Industry experts are keenly watching the market to determine if the pace of rental increases is slowing down. William Reeve, CEO of Goodlord, suggests that the next few months will be crucial in answering this question.
Reeve explains: “Right now, if this year’s current trajectory of consistent 6% to 7% year-on-year rent rises continues, we’ll see new records broken across England.”
He cautions that while a significant jump in rents would be needed over the next two months to surpass 2023 averages, “market demand clearly remains very strong and that this continues to push rents up month-on-month.”