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Average Rents in England Remain at Record Levels in August

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    Rents Up 7% Year-on-Year

    The latest Goodlord Rental Index for August has revealed that the average rent in England is above the £1400 threshold for only the second month on record. This new threshold was surpassed for the first time last month, in July 2024.

    The index is based on data from tenancies processed through the Goodlord platform, giving a snapshot of the private rental and buy-to-let sector in England, including information about average rents, void periods, and other market trends.

    The data shows that the average monthly rent for a newly-let home was 7% higher in August on an annual basis. Last year the average figure was £1347 and in August this year it was £1438.

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      Average Rent is Above £1400 for Second Consecutive Month

      Looking at the month-on-month rental growth trend, there was a marginal dip of 2% across England on average, taking the July figure of £1470 down to £1438 in August.

      This seems to be in line with seasonal trends, as the same drop in the average monthly rent was observed last year, when rental costs fell by 1.5% between July and August.

      Despite this year’s dip of 2%, the average rent for August was still above the £1400 mark for just the second time on record.

      Last month, void periods shortened considerably to an average of 11 days. In August this has lengthened to 15 days – an increase of 36%. This is slightly longer than last year’s average of 13 days. The only region to see voids shorten was Greater London, where the average length dropped from 13 days to 12 days.

      Further Reading: Take a look at our guide to the best buy-to-let areas in London to find out more about property investment in the capital.

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      Salary Inflation Not Keeping Up With Rental Growth

      However, Goodlord also notes that increasingly expensive rents are putting pressure on tenants. The index report states that there has been a reduction in salaries of renters entering new tenancies in August. The average salary has dipped from £38,086 in July, to £36,719 in August – a reduction of 3.6% month-on-month. Annually, salaries are up by 0.86% while rents have risen by 7%.

      William Reeve, CEO of Goodlord, commented: “Rental cost figures from the last two months closely mirror the trends we saw in 2023; a big surge upwards in July, with August figures dipping slightly but staying very high overall. Rents are now up 7% year-on-year, but salaries have only recorded a 1% uplift across the same time period: this is really putting the squeeze on tenants, with many likely to be facing affordability issues when they come to renew or take out a new lease.”

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      Author

      Jessica Ferris

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      Jessica Ferris is a property writer at RWinvest, helping our readers stay ahead of property market trends with the latest news and statistics.

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