In July, the rental market saw unprecedented increases, setting new records according to the Goodlord Rental Index.

The average rental cost in England has risen to £1,470, marking a 7.5% increase year-on-year. This surpasses what some market observers considered the peak of rental costs set last summer.

In July 2023, the average rental price in England was £1,367, then the highest ever recorded by the Index. However, July 2024 is the first time the Rental Index has recorded a national rental average exceeding £1,400.

Regionally, the South West experienced the most significant year-on-year increase, with rents rising by 10%. The West Midlands saw the smallest year-on-year change, with a 4% increase compared to July 2023.

Month-on-month, there was a substantial 20% rise in rents across England, with average rents increasing from £1,225 per property in June to £1,470 in July.

Notably, the North West and South West regions saw rent increases of over 40% for new tenancies in July compared to the previous month. The East Midlands and North East also experienced notable monthly increases of more than 20%.

In contrast, Greater London and the West Midlands had smaller month-on-month changes, at 5% and 3% respectively.

Void periods shortened from 17 days in June to 11 in July across England, a 35% reduction. The North West reported the shortest void periods at five days, down from 17, and the South West at seven days, down from 11. Both regions also saw the largest increases in rental costs over the month.

While void periods are now at a 12-month low, they are slightly longer compared to the previous year; in July 2023, the average void period was nine days.

The Index also recorded an increase in salaries for renters signing new tenancy contracts in July, with average pay rising from £36,800 in June to £38,086 in July. This represents a 3.5% increase, though it lags behind the month-on-month increase in rental costs.

William Reeve, CEO of Goodlord, commented: “These July figures show another remarkable increase in rents. We’ve become used to seeing steady year-on-year increases since 2020, but there were indications that the striking numbers set last summer might start to level off. This argument has been dramatically disproven. July’s figures have smashed rental price records and set a new baseline for the market’s busiest months. At the same time, voids have notably shortened, further highlighting the squeeze on supply. For tenants, the new Government’s moves to accelerate house building can’t come soon enough.”