Rents are down nearly 20% compared to last summer, but are set to spike again this year, lettings proptech firm Goodlord claims.

The annual high for rents in England was recorded in July when average prices rose to £1,470 per month, but the figure was 19% lower at £1,185 in December.

Last month saw a dip for the fifth consecutive time, with rent prices down 1.7% to £1,185, from £1,205 in November.

Fireworks

However, rents for December are still up by over 3% year-on-year, highlighting an ongoing rise in prices, Goodlord says.

The biggest year-on-year change was recorded in the South East, which ended the year with rents up by 5.7% compared to December 2023. The smallest change was seen in the North East, with rents rising just over 2%.

December’s figure of 3.3% marks the smallest year-on-year rise recorded for rent in 2024. In contrast, rents in August were tracking 10% higher compared to August 2023.

I also believe this could be the calm before the storm and that rents will see another major spike in 2025.”

William Reeve, CEO of Goodlord (main picture), says: “After the fireworks of the summer, the rental market ended the year in a far more subdued fashion.

“I also believe this could be the calm before the storm and that rents will see another major spike in 2025,” he says.

“With the introduction of the Renters’ Rights Bill, bidding wars will be outlawed, meaning asking prices are likely to be set that bit higher.”

Savills has forecast rents are set to rocket nearly 18% over the next five years with less rentals available as investors leave the market.