Rents rose for the fifth month in a row during May, while voids held steady at 21 days. Year on year, rents are up 3.7%.
The latest Goodlord Rental Index has revealed that rents jumped again in May - marking the fifth consecutive month of rises.
With market prices typically peaking across late summer and early autumn, we believe this latest price bump marks the beginning of the ‘summer surge’ - with significant rental rises still to come.
Voids remained unchanged during May, as demand stayed consistent across England.
- Rents up across England
- Annual increases stay high
- Voids hold steady for third month in a row
- Tenant salaries take a dip
- Quote from William Reeves, Goodlord CEO
Rents up across England
Rents rose during May, with price increases recorded in all but one region of England. The average rent of a new tenancy is now £1,226, up from £1,216 in April - a rise of almost 1%. This is the highest rental average recorded by the Index since October 2024.
The most significant swing was recorded in the North East, where rents were up by 2.2%. This was followed by the East Midlands, which saw a 1.8% rise in costs.
All regions recorded an increase in average rents, with the exception of the South West, where prices dipped by 0.6%.
Annual increases stay high
The average cost of a rental property in May was 3.7% higher than the same time last year. In May 2024, prices were £1,183 - £43 per month (or £516 per year) cheaper than current prices.
However, May’s year-on-year rental cost rise of 3.7% is lower than April’s figure of 4.2% and March’s 4.6%. This indicates that, although prices over the summer are expected to break records, the pace of rental inflation is beginning to settle into a more moderate pattern.
“Price rises continue to be significant. But the softening of year-on-year increases we’ve seen in recent months could indicate a slight easing of the demand and supply imbalances in some regions.” — William Reeve, Goodlord CEO
Voids hold steady for third month in a row
For the third month in a row, voids held steady; remaining unchanged at 21 days. However, it was a decidedly more mixed picture at regional level. Across the East Midlands, North West, South East and South West, voids shortened as tenant demand spiked.
At the same time, voids lengthened considerably in the West Midlands (up 53%) and in Greater London (up 19%).
Tenant salaries take a dip
It was patchier news for tenants during May, with average salaries of those signing new leases dipping month-on-month.
Overall, average salaries were down 2.5% in May - reducing from April’s £38,629 to £37,676. Salaries are still up by 1.57% year-on-year, although this is now lower than the inflation in rental costs.
Goodlord CEO, William Reeve adds:
“Data from the last 6 years consistently shows that rental prices peak in late summer and early autumn. The way the numbers are currently looking suggests that this year will be no exception and that a range of new rental records will be set in the coming months. Although the pace of year-on-year increases is starting to slow - and this is definitely a trend to watch closely - ongoing supply issues coupled with landlord jitters ahead of the Renters’ Rights Bill means that rents remain on track to rise for the foreseeable.”
