Rents continue rising as London breaks the £2,000 barrier

Rents continue rising as London breaks the £2,000 barrier

0:01 AM, 2nd July 2024, About 3 months ago

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Rents in England have continued their upward trend in June – rising by 6.7% year-on-year, according to the Goodlord rental index.

This increase puts the average rent at £1,225 per property, compared to £1,149 in June 2023.

The South West witnessed the biggest annual rise, with rents jumping 13% to £1,347.

London also reached a new milestone, with average rents exceeding £2,000 for the first time to hit £2,010.

That is, Goodlord says, a 2% year-on-year increase – and rents grew by 4% between May and June,

Price rises are starting to slow?

The firm’s chief executive, William Reeve, said: “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.”

He adds: “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 four to eight 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.”

Peak season for rent prices

June traditionally marks the beginning of the peak season for rent prices, driven by student demand.

The rental index has recorded rising rents between June and July every year since 2019, suggesting a potential further increase next month.

The report also highlights a significant decline in voids.

The average void has dropped 19% to 17 days in June compared to May.

However, this is slightly higher than the 16-day average recorded in June 2023.


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