Rental growth typically undergoes a seasonal summer upswing, as it is usually the busiest period for the market and when rental inflation reaches its peak. The increase recorded in May could suggest that the market is starting to enter into this busy season according to Goodlord.
May’s figure represents a seven-month high as the average cost of a rental property in England now sits at £1183 per month. This is 1.4% up on April when the average was £1166. It’s the most expensive average rent since October 2023 when the rent of a new tenancy was £1190.
The biggest month-on-month rise was found in the West Midlands where rent increased by 4%, and the second highest was in the North West where they increased by 2%.
William Reeve, CEO of Goodlord, commented: “This month’s data may well have signalled the starting gun on summer price escalations. The coming months are traditionally the busiest season for the rental market and the time when rents peak.
“During 2024 so far, year-on-year rent rises have been fairly consistent – hovering around the +6-7% mark. Rental averages broke the £1,350 per month barrier for the first time in the summer of 2023. That means, if this 6-7% year-on-year trend continues, we could be seeing our first £1,400+ rental average being recorded in just a few months time.”
Further Reading: What is off-plan property? Find out the answer to this with our guide or get a rental income estimate with our handy calculator or learn more about tax on buy to let properties.
