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According to the Goodroad Rental Index, rents rose 6.4% year-on-year to £1,183 in May, the highest price in seven months.
Average rent increased 1.4% in May alone.
“This month’s data may have signalled the start of a summer price surge, with the coming months traditionally the busiest period for the rental market and rents reaching their peak,” Goodroads chief executive William Reeve said.
“Year-on-year rent increases have remained fairly consistent so far in 2024, hovering around +6-7%, with average rents breaching the £1,350 per month barrier for the first time in summer 2023.
“This means that if this year-on-year trend of 6-7% continues, we could see average rents hit above £1,400 for the first time within just a few months. However, while rents continue to outpace both inflation and yields, there are signs that pressure is easing, as can be seen in vacancy figures.”
The biggest month-on-month change was seen in the West Midlands, where rents rose by 4%, followed by the North West, where rents increased by 2%.
Vacancy periods across England increased in May, reaching an average of 21 days – up two days from April’s average of 19 days.
The average vacancy days — the amount of time a property is empty between leases — is up 11% from the same time last year, suggesting the imbalance between supply and demand is easing slightly. About a year ago, in May 2023, the average vacancy days was 19 days.
The biggest changes in vacancy periods were seen in Greater London and the East Midlands in May, with vacancy periods both increasing by 20%.
The average annual salary of tenants who signed new leases in May was £37,095, up 0.8% from £36,810 in April. The lowest salary was for tenants in the North East (£30,718) and the highest was in Greater London (£49,883). The average age of tenants in England in May was 33.