Average UK rent tops £1,400 for the first time

A perfect storm of soaring demand and limited supply of homes has pushed rents to unprecedented levels, according to the latest Goodlord Rental Index.

The average cost of renting a property in England surged by 7.5% year-on-year, shattering previous records set just last summer.

With the traditional letting peak underway, July saw rents jump 20% compared to June, to £1,470.

Some regions, including the North West and South West, experienced increases of more than 40% month-on-month.

However, tenants have seen a modest salary boost of 3.5%, which pales in comparison to the rent price explosion.

‘Remarkable increase in rents’

Goodlord’s chief executive, William Reeve, said: “These July figures show another remarkable increase in rents.

“We’ve become used to seeing steady year-on-year increases since 2020, but there were indications that the striking numbers set last summer might start to level off.

“This argument has been dramatically disproven.”

He added: “July’s figures have smashed rental price records and set a new baseline for the market’s busiest months.

“At the same time, voids have notably shortened, further highlighting the squeeze on supply.

“For tenants, the new government’s moves to accelerate house building can’t come soon enough.”

Growth in tenant demand

With the growth in tenant demand, landlords are seeing voids fall sharply.

Goodlord says voids shortened from 17 days in June to just 11 days in July across England.

That’s a reduction of 35% and voids are now at a 12-month low.

However, voids are still tracking slightly longer year-on-year and last year the average void was nine days.

The index shows the shortest voids are in the North West, at just five – down from 17 – and the South West, at seven days – down from 11.

Both regions also recorded the biggest increases in rents over the month.

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