"Rents are behaving fairly normally for this time of year - slightly down compared to August, as is often the case, but still very high"
- William Reeve - Goodlord
The average price for a rental property in September was £1,417, marginally lower than August’s £1,438, but still up by more than 5% year-on-year, according to the latest figures released by Goodlord.
The year-on-year rise continues
2024 rents continue to outpace their year-on-year averages, with September prices up by 5.3%. The average cost of a new rental property in England stood at £1,417 in September, up by more than £70 per month compared to September 2023.
Despite being a sizeable increase, this year-on-year figure is slightly smaller than the averages seen throughout the course of the year to date. Over recent months, the Index has regularly recorded annual uplifts of 7% or higher. September’s figure of a comparatively modest 5.3% could provide the first indication seen in many months that prices are starting to soften.
These figures, however, also vary intensely by region with some areas still recording far higher than average year-on-year rental increases. In the South West, for example, average rents are up by a huge 11% compared to September 2023.
The smallest year-on-year increases were seen in the North West and the West Midlands, with rents in each of these areas experiencing a year-on-year rise of 2-3%.
Month-on-month rents steady as £1,400 threshold broken again
Month-on-month rents continued to hold steady in September, as demand from tenants continued to outstrip supply.
Month-on-month prices dipped slightly on average (down 1.5%, or £21 per month), a trend also seen last September. However, rents stayed above the £1,400 mark for a record-breaking third month in a row, setting a ‘new normal’ for peak season prices.
At a regional level, rents were up slightly in the West Midlands and the South East. And Greater London saw a big uptick in average costs, with prices in the capital up from £2,206 to £2,376 - a significant rise of almost 8% month-on-month.
Voids stay the course in September
Voids - the length of time a property remains vacant between tenancies - held steady during September at 15 days. This is unchanged from August.
At a regional level, voids lengthened in the South West (15 to 18 days), the West Midlands (20 to 22 days) and the South East (11 to 12 days).
Voids shortened in Greater London (12 to 10 days), the North East (12 to 10 days), and the North West (18 to 14 days).
Tenants salaries spring up in September
After a 3.6% reduction between July and August, the average salary of renters signing tenancies rose by almost 2% in September. This takes average salaries from £36,719 in August to £37,350 in September.
Year-on-year, salaries for tenants taking on a new rental property are now up by 5.55%. This increase means that the year-on-year rise in tenant salaries (5.55%) is higher than the year-on-year increase in rents (5.3%).
William Reeve, CEO of Goodlord, comments: “Rents are behaving fairly normally for this time of year - slightly down compared to August, as is often the case, but still very high.
"However, when you read between the lines, there are some signs that prices and affordability could be softening. Year-on-year figures for rent rises aren’t quite as intense as we’ve seen in recent months, and it was better news for tenants around average salaries. It’s too soon to tell but this could be a sign that the rental cost ‘bull run’ is starting to taper off ahead of the winter.”
