Rents soared to a record £1,300 last month, nearly 20% higher than June, new research shows.

Data released by tenant referencing firm Goodlord reveals an average rental of £1,367, 9.4% higher than the previous record, set in September 2022, of £1,249.

The Goodlord Rental Index describes a 19% jump from June’s averages, when average rents sat at £1,148 per property.

The index, which analyses tens of thousands of completed tenancies each month, saw the highest average rental costs since its launch in January 2019.

Stock shortage

Goodlord experts believe the volume of larger, more expensive properties being let to groups of students in July contributed to this rapid rise in average costs.

The pace of student lets, combined with rising interest rates and lack of stock, is likely to have created the upward pressure on prices.

Every region

Rents rose in every region monitored by the index, with significant uplifts in the North West, which saw a 48% rise in prices (£917 to £1,358), and the South West, which saw a 45% increase in average prices (£1,191 to £1,725).

There were also big rent increases in the East Midlands (21%) and the North East (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.

Voids drop

As rents soared, void periods dropped dramatically, with the shortest void periods recorded by the index, dropping by 44% to hit an average of just nine days in July.

This month’s numbers are quite staggering.”

William Reeve, CEO of Goodlord, says: “This month’s numbers are quite staggering.

“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.”

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