Rising Rents Predicted Over Summer: Insights from the Latest Rental Index

  • Jun 5th 2024

The rental market in England is showing signs of another surge as we approach the summer months. According to the latest Rental Index from the PropTech, rents have reached their highest levels since October over the past month. This development underscores the ongoing challenges faced by renters across the country.

A Significant Increase in Rent Costs

Between April and May, rents across England rose by over 1%, which brings the year-on-year increase to a staggering 6%. This upward trend has been a consistent theme throughout 2024. The average cost of renting a property in England now stands at £1,183, marking a 1.4% increase from April’s average of £1,166. This is the highest average rent recorded since October 2023, when new tenancies averaged £1,190 per month.

Year-on-Year Rent Increases

When looking at year-on-year data, average rents in May have risen by 6.4%. This figure aligns with the consistent year-on-year rent increases observed throughout 2024. The cost of renting a property in England has increased by £70 compared to May 2023. This consistent rise in rental costs reflects broader economic trends and pressures within the housing market.

Voids and Their Implications

In addition to rising rents, the length of void periods – the time a property remains vacant between tenancies – has also increased. In May, the average void period across England lengthened to 21 days, up from April’s average of 19 days. This 11% increase from the same time last year indicates a slight easing of the imbalance between demand and supply.

Balancing Market Pressures

Despite the upward pressure on rents, there are indications that some market pressures might be easing. The increase in void periods suggests a slight reduction in the imbalance between demand and supply, potentially providing some relief to renters. However, the overall trend of rents outpacing both inflation and earnings remains a concern for many.

Looking Ahead

As we move into the summer, traditionally the peak season for the rental market, all eyes will be on how these trends evolve. The combination of rising rents and increasing void periods paints a complex picture of the rental landscape in England. Renters and landlords alike will need to navigate these changes carefully as the market continues to adjust to broader economic conditions.