The average cost of rent in England jumped 19% hitting a record £1,367 per property in July compared to the previous month, data from Goodlord shows.
Tennant costs are being driven by the summer surge in student lets, rising interest rates and a lack of stock, which has led to “unprecedented upward pressure on prices,” says the letting agent’s monthly rental index.
It adds that English rents are now the highest since the survey began in January 2019, and are 9.4% higher than the previous £1,249 record set last September.
Rents agreed in July are up 10% on a year ago.
Prices rose in every region last month, with the highest jumps in average rents coming in the North West, which saw a 48% rise in prices to £1,358, and the South West, where average prices lifted 45% to £1,725.
Greater London saw the lowest average rises, lifting 1.06% to £1,965.
Despite price rises, average voids across the country plunged 44% to 9 days in July from 16 days the month before.
The North East and the South West enjoyed the lowest voids, with 6 vacant days on average, down 60% and 45%, respectively.
The highest voids came in the West Midlands, which posted an average of 14 days, 22% lower compared to June. The capital saw voids fall 21% to 11 days.
Goodlord chief executive William Reeve says: “This month’s numbers are quite staggering. In July, we do usually expect to see an increase in rents and a reduction in voids — and all indicators pointed to a particularly red hot summer for the rental market, if not the weather.
“So, while the 10% year-on-year increase is a big shift, the sharp drop in void periods is also particularly surprising.
“Digging into the data, we can see a large number of multiple occupancy student lets being confirmed during July, which has pushed up average prices in key regions such as the North East and South West.
“Traditionally, rental costs continue to increase until September before cooling off in the autumn, which could mean these aren’t the last records we’ll see broken before the year is out.”
