Average UK rent shatters the previous record

The average UK rent has soared by 19% to reach £1,137 in July from June and voids are dropping quickly to highlight the strong competition in the private rented sector (PRS), one index reports.

The figures from Goodlord reveal that is the highest rent price since it began keeping records in January 2019.

And as demand for rental properties continues to intensify in the summer months, historically the busiest period for the rental market with an upsurge in student lets, have helped to push up prices.

The scarcity of available properties is also having an effect.

‘Numbers are quite staggering’

Goodlord’s chief executive, William Reeve, said: “This month’s numbers are quite staggering. In July, we do usually expect to see an increase in rents and a reduction in voids – and all indicators pointed to a particularly red hot summer for the rental market, if not the weather.

“So, while the 10% year-on-year increase is a big shift, the sharp drop in void periods is also particularly surprising.

“Digging into the data, we can see a large number of multiple occupancy student lets being confirmed during July, which has pushed up average prices in key regions such as the North East and South West.”

He added: “Traditionally, rental costs continue to increase until September before cooling off in the autumn, which could mean these aren’t the last records we’ll see broken before the year is out.”

Average rent cost in England is 9.4% higher

The average rent cost in England is 9.4% higher than the previous record set in September 2022, when average rents were £1,249.

And when comparing the data from June, the surge is even more staggering, with July’s average rent being 19% higher than June’s £1,148 per property.

That figure dwarfs the average month-on-month increase of 1.3% witnessed throughout the year.

Goodlord attributes this rapid rise to a jump in larger, more expensive properties being let to groups of students ahead of the new academic year.

And a shortage of rental stock across the entire country is also contributing to the unprecedented increase in rents.

Rents have surged in every region

Goodlord says that rents have surged in every region it monitors, with the North West experiencing a staggering 48% rise in average prices, surging from £917 to £1,358.

Similarly, the South West saw a significant 45% increase in average prices, soaring from £1,191 to an eye-watering £1,725.

Tenants in the East Midlands saw rents rise by 21%, and the North East by 25%.

Greater London, the South East and the West Midlands all saw more modest increases.

The West Midlands is currently the cheapest region for renters, with Greater London the most expensive.

Void periods plummeted by 44%

However, as rental costs soared, void periods plummeted by 44% to just nine days on average in July.

This significant drop from 16 days in June marks the lowest void rate ever recorded by the index, surpassing the previous record of 10 days set back in July 2022.

Among the regions, both the North East and the South West boasted the shortest void periods, with just six days on average – a striking 60% and 45% reduction, respectively, compared to June.

Landlords in the West Midlands saw the longest voids at 14 days – which is still 22% lower than June’s figure.

In Greater London, the change was comparatively modest, with a 21% reduction in voids, from 14 days to 11 days in July.

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