UK- Rents Remain Elevated in August, Surpassing ￡1,400 for Second Consecutive Month

After reaching record highs in July, rents remained elevated in August, surpassing the ￡1,400 mark for the second consecutive month, according to the Goodlord Rental Index. The average rent for a property in August was ￡1,438, slightly below the July record of ￡1,470. However, year-on-year, rents have increased by nearly 7%.

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In August, the average cost of a new rental home in England was 7% higher than the same period last year. Rents rose from ￡1,347 in August 2023 to ￡1,438 in August 2024, marking a ￡91 monthly increase.

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The most significant year-on-year increase was recorded in the South West, where average rents jumped by 13%, followed closely by the East Midlands and the North East, with over 9% increases in both regions.

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The West Midlands and Greater London experienced the smallest year-on-year rent increases, with average costs rising by just 2-3%.

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Record Rents despite a Month-on-Month Decline

After a sharp increase in July, August saw a slight decrease in average property rents across England, dipping by 2% from ￡1,470 in July to ￡1,438 in August. This follows a similar trend in 2023, when rents fell by 1.5% between July and August.

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Despite the month-on-month decline, August 2024 rents remained above the ￡1,400 threshold for only the second time on record, with the first occurrence in July.

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Regionally, the picture was mixed. Rents increased in the East Midlands, Greater London, the South East, and the West Midlands. Conversely, reductions were noted in the North East, North West, and South West. The North West, which saw a record increase in July, experienced a volatile 23% drop in August, with average rents falling from ￡1,451 in July to ￡1,117 in August.