Rental income buoyancy in England persisted throughout September 2024, exceeding the £1,400 threshold for the third month running.

Data from the Goodlord Rental Index revealed that the average rental cost for a property in September stood at £1,417. While this was a slight dip from August’s figure of £1,438, it still represented a substantial increase of over 5% compared to the same time last year.

September’s rent levels were up by 5.3% year-on-year, signalling a continuing upward trend. In real terms, tenants were paying more than £70 extra per month compared to September 2023.

However, this increase was somewhat gentler than the annual hikes exceeding 7% that characterized much of 2024. This could suggest that rental prices may be cooling off, albeit slowly.

Looking regionally, the South West saw a sharp 11% increase compared to last September, whereas the North West and West Midlands experienced much more modest growth, with rents climbing by only 2% to 3%.

On a month-to-month basis, rents appeared relatively stable, with a minor dip of 1.5%, or about £21 less per month. Still, prices stubbornly remained above the £1,400 benchmark, cementing what seems to be the ‘new normal’ for peak renting seasons.

While most regions saw little change month-to-month, the South East and West Midlands noted slight rises. Greater London, however, witnessed a sharper surge, as average rents soared from £2,206 to £2,376—a hefty 8% jump in just one month.

As for voids—the period a property sits vacant before being rented—these held steady at an average of 15 days in September, mirroring August’s figures. Yet, variations emerged across regions. Voids stretched out in the South West (15 to 18 days), West Midlands (20 to 22 days), and South East (11 to 12 days). On the flip side, London saw voids shrink from 12 to 10 days, a trend echoed in the North East and North West, where voids dropped to 10 and 14 days, respectively.

In terms of tenant incomes, average salaries inched up by almost 2% in September, rising from £36,719 to £37,350. Over the course of the year, renter salaries increased by 5.55%, outpacing the 5.3% rise in rents. This means tenant earnings are finally growing faster than the costs of renting.

William Reeve, CEO of Goodlord, commented, “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.”

This mix of mild softening in rental prices, region-specific void shifts, and tenant salary growth adds complexity to the current rental landscape. Yet, while some areas may be showing early signs of easing, for most renters, high costs remain the defining challenge.