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Goodlord Rental Index
Goodlord Rental IndexSeptember 2024
Monthly key figures for the private rented sector

Welcome to Goodlord's September 2024 Rental Index.

Toby Burgess-Smith

Every month, Goodlord reveals key figures for the private rented sector based on tenancies processed through our platform, including average rents, voidage periods, and more.

The latest Rental Index from Goodlord has found that rents across England remained high in September - breaking the £1,400 barrier for the third month in a row. The average price for a rental property in September was £1,417, marginally lower than August’s £1,438, but still up by more than 5% year-on-year.

Toby Burgess-Smith
Data Analyst, Goodlord

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1. The year-on-year rise continues

2024 rents continue to outpace their year-on-year averages, with September prices up by 5%. The average cost of a new rental in England stood at £1,417 in September, up by more than £70 per month compared to September 2023.

Despite being a sizeable increase, this year-on-year figure is slightly smaller than the averages seen throughout the course of the year to date. Over recent months, the Index has regularly recorded annual uplifts of 7% or higher. September’s figure of a comparatively modest 5% could provide the first indication seen in many months that prices are starting to soften.

These figures, however, also vary intensely by region with some areas still recording far higher than average year-on-year rental increases. In the South West, for example, average rents are up by a huge 11% compared to September 2023.

The smallest year-on-year increases were seen in the North West and the West Midlands, with rents in each of these areas experiencing a rise of 2-3%

Click on region names to toggle them on and off
Click on region names to toggle them on and off

Average monthly rent across UK regions since January 2020.

2. Month-on-month rents steady as £1,400 threshold broken again

Month-on-month rents continued to hold steady in September, as demand from tenants continued to outstrip supply.

Month-on-month prices dipped slightly on average (down 1.5%, or £21 per month), a trend also seen last September. However, rents stayed above the £1,400 mark for a record-breaking third month in a row, setting a ‘new normal’ for peak season prices.

At a regional level, rents were up slightly in the West Midlands and the South East. And Greater London saw a big uptick in average costs, with prices in the capital up from £2,206 to £2,376 - a significant rise of almost 8% month-on-month.

3. Voids stay the course in September

Voids - the length of time a property remains vacant between tenancies - held steady during September at 15 days. This is unchanged from August.

At a regional level, voids lengthened in the South West (15 to 18 days), the West Midlands (20 to 22 days) and the South East (11 to 12 days).

Voids shortened in Greater London (12 to 10 days), the North East (12 to 10 days), and the North West (18 to 14 days).

Average void periods in days across UK regions since January 2020.

3. Tenant salaries see uplift

Average tenant salaries rose by 0.8% this month, increasing from £29,637 in July to £29,883 in August.

The age of tenants dipped slightly, taking the average down to 32. The last time the average age was this low was August 2021, reflecting the number of student renters signing tenancies in the summer months.

Click on region names to toggle them on and off

4. Tenants salaries spring up in September

After a 3.6% reduction between July and August, the average salary of renters signing tenancies in September rose by almost 2%. This takes the average salary from £36,719 in August to £37,350 in September.

Year-on-year, salaries for tenants taking on a new rental property are now up by 5.55%.

This increase means that the year-on-year rise in tenant salaries (5.55%) is higher than the year-on-year increase in rents (5.3%).

William Reeve, CEO of Goodlord, says:

“Rents are behaving fairly normally for this time of year - slightly down compared to August, as is often the case, but still very high. However, when you read between the lines, there are some signs that prices and affordability could be softening. Year-on-year figures for rent rises aren’t quite as intense as we’ve seen in recent months, and it was better news for tenants around average salaries. It’s too soon to tell but this could be a sign that the rental cost ‘bull run’ is starting to taper off ahead of the winter.”