UK rents climbed almost 5% year-on-year in September, according to the latest Goodlord Rental Index, with month-on-month rises across the vast majority of the country despite the drag effect of the Renters’ Rights Act.
Average rents reached £1,581 per property, up from £1,507 a year earlier. For tenants, that adds £888 to annual housing costs.
North East leads regional growth
Wales recorded the sharpest annual rise among the UK nations, with rents up more than 7%. England followed at 5.5%, while Scotland trailed with an increase of just under 3%.
Among English regions, the North East stood out, with average rents rising 14% from £878 to £1,000. Yorkshire and the Humber came next at almost 7%, ahead of the North West at just over 6%. Greater London rose 4.4%, the West Midlands 3.9% and the South East 3.1%, while the South West managed 1.4%.
The East of England was the only region to see rents fall, with a small 0.4% decline. The East Midlands, where rents rose 1.8%, has recorded slowing annual growth for two years running, which Goodlord said points to a significant shift in demand across the region.
Monthly rises continue despite regional slowdowns
Between August and September, UK rents rose by just under 1% overall. Every region tracked saw an increase except Yorkshire and the Humber, where rents dipped slightly. The North East again led the field, with average rents up 5.6% on the month, followed by the North West at 3%.
Void periods shorten
The average void period fell to 20 days in September from 21 in August. The North East recorded the shortest voids at 11 days on average, while properties in Yorkshire and the Humber sat vacant between tenancies for 29 days.
Updated methodology
The September edition uses a revised methodology that Goodlord said brings its data closer to the approach in official ONS rental statistics. The index is now UK-wide and includes data for Scotland and Wales. Figures are weighted by property characteristics and tenant numbers, so a spike in HMO lettings in one region, for example, does not distort averages.
Goodlord has also added quality checks for each region, and the national figure is weighted across all tenancies so each region’s contribution reflects its share of rental activity.
UK rents outpace inflation as growth slows
“Overall, rental averages continue to outstrip inflation year-on-year – highlighting the ongoing supply and demand pressures,” said William Reeve, chief executive of Goodlord.
“But the overall pace of rent growth does appear to be slowing, particularly in certain regions. Key factors, such as the sharp drop in net migration figures, are likely to be helping ease some of the supply/demand imbalance we’ve seen over recent years.”
