Rents across England remained high in September 2024, breaking the £1,400 barrier for the third consecutive month.
According to the Goodlord Rental Index, the average price for a rental property in September was £1,417, slightly lower than August’s £1,438, but up by more than 5% from the previous year.
The year-on-year increase in rents continued, with September prices rising by 5.3%.
This marked an increase of over £70 per month compared to September 2023.
This increase was smaller than the annual uplifts of 7% or more seen throughout much of the year, which could indicate a potential softening in prices.
Average rents in the South West rose by 11% compared to September 2023.
Conversely, the North West and West Midlands saw smaller increases of only 2% to 3%.
Month-on-month, rents were stable in September despite a slight dip of 1.5% (or £21 per month).
However, prices stayed above the £1,400 mark, establishing a ‘new normal’ for peak season.
The South East and West Midlands saw slight month-to-month increases, while Greater London experienced a notable rise, with average costs increasing from £2,206 to £2,376 — an almost 8% jump.
Voids – the average time a property remains vacant – held steady at 15 days in September, unchanged from August.
Voids lengthened in the South West (from 15 to 18 days), the West Midlands (20 to 22 days), and the South East (11 to 12 days).
In contrast, voids shortened in Greater London (from 12 to 10 days), the North East (12 to 10 days), and the North West (18 to 14 days).
Average tenant salaries rose by nearly 2% in September, taking the average salary of renters from £36,719 in August to £37,350.
Year-on-year, salaries for new rental tenants increased by 5.55%, meaning this rise is now higher than the year-on-year increase in rents, which stands at 5.3%.
William Reeve, CEO of Goodlord, said: “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.”
