Strong tenant demand drive up rents by 8% across UK

Rental prices and voids held steady throughout September while strong demand for rental properties kept rents at nearly 8% higher than prices seen at the same time last year, the latest Goodlord Rental Index reveals.

The average cost of rent in September barely moved from the August average – coming in at £1,346.28 per property during September – just 91p lower than the August average of £1,347.37.

NEW RECORDS

But both Greater London and the South East witnessed new cost of rent records with renters in the capital now paying £2,275 per property – an increase of 6% month-on-month and the first time the Goodlord Rental Index has recorded an average cost above the £2,200 threshold for the capital.

And in the South East rental costs breached the £1,500 barrier for the first time with rents in the region now £1,524 on average – a 2% rise on August figures.

The North West and the West Midlands also saw marginal rises of 1% in the cost of the rent although there were reductions in average costs for renters in the East Midlands, North East, and South West.

Overall, the cost of rent is now 8% higher than the same time last year.

LOWER SALARIES

The data also shows that tenants moving in September have slightly lower salaries. The average salary of a tenant in England dropped from £37,037 in August to £35,386 – a reduction of 4.5%.

William Reeve, Goodlord Chief Executive, says: “Whilst this September didn’t bring the nationwide bump in rental prices we saw last year, records were smashed across London and the South East – with rental costs there now significantly higher than their 2022 and early 2023 levels.

“The onset of autumn typically brings a period of stability when it comes to prices but with pressures on the market more intense than ever, we doubt September represents an end to the cycle of price setting which we’ve seen over recent months.”