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UK Rents Surge as Demand Outpaces Supply

The UK rental market has observed a notable surge, with rents increasing by 8% compared to last year, according to the latest data from the Goodlord Rental Index. This surge is attributed to the potent demand for rental properties.

In September, the average rent was pegged at £1,346.28 per property, a negligible decrease from the August average which stood at £1,347.37. This underscores the steadiness of rental prices and void periods throughout the month.

Greater London and the South East set new benchmarks in terms of rental costs. For the first time, the Goodlord Rental Index has noted that the average rent in the capital surpassed the £2,200 mark, standing at £2,275 per property. This represents a 6% hike month-on-month. Simultaneously, the South East saw its rental costs go beyond £1,500 for the first time, with average rents now at £1,524, indicating a 2% ascent from the August data.

While the North West and the West Midlands also experienced slight increases of 1% in rental costs, regions like the East Midlands, North East, and South West observed a reduction in their average rental values.

Beyond rental costs, the data revealed a decrease in the average salaries of tenants who moved in September. The average tenant salary in England witnessed a dip from £37,037 in August to £35,386, marking a 4.5% decrease.

Commenting on the findings, William Reeve, Chief Executive of Goodlord, said: “Whilst this September didn’t bring the nationwide bump in rental prices we saw last year, records were smashed across London and the South East – with rental costs there now significantly higher than their 2022 and early 2023 levels.

“The onset of autumn typically brings a period of stability when it comes to prices but with pressures on the market more intense than ever, we doubt September represents an end to the cycle of price setting which we’ve seen over recent months.”