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According to the Goodroad Rental Index, rents rose by more than 4% month-on-month between May and June, from £1,183 to £1,225.
The highest monthly increase was in the Southwest (14%), followed by the Northeast (4%) and Northwest (4%).
This increase pushed annual rental costs up by up to 6.7% year-on-year.
The most significant year-on-year increase was recorded in the South West, where prices rose from £1,191 to £1,347 for 2023. This is an increase of 13%.
In London, rents have topped the £2,000 mark for the first time this year. The average rent for a London property in June was £2,010, up 2% year-on-year.
“There’s a lot of debate about whether the pace of rental price growth is starting to slow,” Goodroad chief executive William Reeve said.
“The next three months, when rents typically reach their highest prices for the year, will likely settle this debate.”
“Currently, if current trends continue, with rents rising by 6 to 7 per cent this year compared to last year, new records are set to be broken across England.
“And while many indications now suggest this may happen, rents would need to rise substantially over the next four to eight weeks to surpass the 2023 average.”
“However, it is fair to say that market demand clearly remains very strong and this continues to drive rents up month on month.”
In tandem with the rise in rents, vacancy periods fell significantly in June: the average vacancy period (the number of days a property remains vacant between leases) was 17 days in June, down 19% from 21 days in May.
The change highlights the continued vigor of the market.