Rents rise for fifth consecutive month as ‘summer surge’ looms – London Wallet

Rents in England increased for the fifth consecutive month in May, according to the latest Goodlord Rental Index. 

The latest price jump could mark the start of the seasonal ‘summer surge’, with further rises expected over the coming months.

The average rent for a new tenancy in May rose by almost 1% from April, reaching £1,226 – the highest recorded by the index since October 2024. 

The North East recorded the biggest month-on-month increase at 2.2%, followed by the East Midlands with a 1.8% rise. Rents increased in all regions except the South West, where they fell by 0.6%.

Compared to May 2024, rents were 3.7% higher, although the pace of year-on-year increases has slowed from April’s 4.2% and March’s 4.6%. 

“Price rises continue to be significant,” said Goodlord CEO William Reeve. “But the softening of year-on-year increases we’ve seen in recent months could indicate a slight easing of the demand and supply imbalances in some regions.”

The length of time a property remains empty between tenancies held steady at 21 days for the third month in a row. However, there were regional variations, with voids shortening in the East Midlands, North West, South East and South West due to increased demand, while they lengthened in the West Midlands (up 53%) and Greater London (up 19%).

Tenant salaries dipped in May, falling by 2.5% to an average of £37,676, down from £38,629 in April. Year-on-year, salaries are up by 1.57%, but this remains below the inflation in rental costs.

“Data from the last six years consistently shows that rental prices peak in late summer and early autumn,” Reeve added. “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.”