Rents in June 2024 rose by 6.7% year-on-year, according to the latest figures from the Goodlord Rental Index. Rents rise by 4% month-on-month between May and June with an average now being £1,225.
The average cost of rent for tenancies confirmed in June was £1,225. This is 6.7% higher than figures recorded at the same time last year - in June 2023, average rents sat at £1,149.
Regionally, 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 (up 2% year-on-year).
June traditionally marks the beginning of ‘high season’ for rental prices. Buoyed by demand from students, rents typically peak between June and September. Last year, rents peaked in July at £1,367 per property, on average.
During every year since 2019, the Rental Index has recorded a rise in rental prices between June and July, meaning even higher rental prices should be expected next month.
Between May and June, average rents rose by 4% month-on-month - from £1,183 to £1,225 - with all but one region recording an increase in rents.
The highest monthly rise was recorded in the South West (14%), followed by the North East (4%) and North West (4%)
The smallest monthly rises were recorded in the South East (1%) and Greater London (1%)
The West Midlands saw a very small reduction in average rental prices (-0.42%).
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.
June’s 17 day average was, however, slightly longer than the void period recorded this time last year, in June 2023, when voids were 16 days.
“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"