With rental costs typically peaking during late summer and early autumn, experts suggest this latest uptick could signal the start of the seasonal “summer surge,” with further price hikes expected in the coming months. Void periods remained steady throughout May.
Rent increases were recorded in nearly every region of England, with only the South West bucking the trend. The average rent for a new tenancy rose to £1,226 in May, up from £1,216 in April - an increase of nearly 1%. This is the highest average rent recorded by the Index since October 2024.
The North East saw the most notable increase, with rents rising by 2.2%, followed by the East Midlands, where costs climbed by 1.8%. The South West was the only region to report a decline, with average rents falling by 0.6%.
Compared to the same time last year, average rents in May were 3.7% higher. In May 2024, the average rent was £1,183: £43 less per month, or £516 less annually, than current prices.
However, the annual rate of rent inflation appears to be slowing. May’s 3.7% year-on-year increase is down from 4.2% in April and 4.6% in March. While rents are still expected to climb this summer, the data suggests the pace of growth may be moderating.
Void periods remained unchanged for the third consecutive month, holding steady at an average of 21 days. Regionally, the picture was mixed: voids shortened in the East Midlands, North West, South East, and South West, driven by increased tenant demand. In contrast, voids lengthened significantly in the West Midlands (up 53%) and Greater London (up 19%).
May also brought less positive news for tenants on the income front. The average salary of renters signing new leases dropped by 2.5% compared to April, falling from £38,629 to £37,676. Although this represents a 1.57% year-on-year increase, it still lags behind the current rate of rental inflation.
Goodlord CEO, William Reeve adds:
“Data from the last 6 years consistently shows that rental prices peak in late summer and early autumn. The way the numbers are currently looking suggests that this year will be no exception and that a range of new rental records will be set in the coming months. Although the pace of year-on-year increases is starting to slow - and this is definitely a trend to watch closely - ongoing supply issues coupled with landlord jitters ahead of the Renters’ Rights Bill means that rents remain on track to rise for the foreseeable.”
