Jagaul.com Real Estate Rental growth accelerates with 4% increase in single month

Rental growth accelerates with 4% increase in single month

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Rents rose by more than 4% month-on-month between May and June – from £1,183 to £1,225, Goodlord’s Rental Index has revealed.

The highest monthly increase was recorded in the South West (14%), followed by the North East (4%) and North West (4%)

This increase has pushed the annual cost of renting up to 6.7% year-on-year.

The most significant year-on-year rise was recorded in the South West, where prices rose from £1,191 in 2023 to £1,347. This is an increase of 13%.

In London, rents broke the £2,000 mark for the first time this year. An average of £2,010 was recorded for properties in the capital during June, where they rose by 2% year-on-year.

William Reeve, chief executive of Goodlord, said: “There is a lot of discussion as to whether the pace of rental price rises is starting to slow.

“The next three months – which typically bring the annual peak in rents – will settle this debate.

“Right now, if this year’s current trajectory of consistent 6-7% year-on-year rent rises continues, we’ll see new records broken across England.

“And whilst a lot of the current signs indicate that this might be on the cards, we would need to see a very sizeable jump in rents over the next 4-8 weeks to surpass 2023 averages.

“However, it’s safe to say that market demand clearly remains very strong and that this continues to push rents up month-on-month.”

Alongside the rise in rents, voids significantly shortened in June. The average void period – the number of days a property remains vacant between tenancies – was 17 days in June. This is down from 21 days in May, a 19% reduction.

This change underlines that the market is continuing to heat up.

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