UK rents have risen by almost 5% over the past year, but the latest figures reveal a widening gap between regional rental markets. The average monthly rent reached £1,581 in September, up from £1,507 a year earlier.
According to the latest Goodlord Rental Index, the 4.9% increase means tenants are paying an extra £888 annually. Rents also rose by 0.9% between August and September, despite signs of slowing growth in some parts of the country.
North East leads rental growth
The North East recorded the largest annual increase, with rents jumping 13.9% from £878 to £1,000 per month. That represents an additional £1,464 a year for tenants. Wales followed with a 7.4% rise, taking average rents to £994.
Yorkshire and the Humber recorded growth of 6.9%, while the North West saw a 6.1% increase. In Greater London, rents rose by 4.4% to £2,306 per month. The South East recorded a more modest increase of 3.1%, reaching £1,461.
The East of England was the only region to register an annual decline, with rents falling by 0.4% to £1,375. The East Midlands also showed signs of slowing growth. Rents increased by just 1.8% over the year to £1,018, continuing a two-year trend of weakening rental inflation.
Across England, average rents rose by 5.5% to £1,619. Scotland recorded a smaller increase of 2.8%, taking its monthly average to £1,158.
Rents continue to rise month-on-month
The North East also recorded the largest monthly increase, with rents rising by 5.6% between August and September. The North West followed with a 3.1% rise, while the South West recorded an increase of 2.5%.
Yorkshire and the Humber was the only region to record a monthly decline, although the reduction was marginal. Meanwhile, the average rental void period across the UK shortened from 21 days in August to 20 days in September. The North East recorded the shortest voids, averaging just 11 days between tenancies. Yorkshire and the Humber had the longest, at 29 days.
Rental inflation shows signs of easing
Despite the continued increase in rents, Goodlord believes the pace of rental inflation is beginning to moderate in parts of the country.
William Reeve, chief executive of Goodlord, said: “Overall, rental averages continue to outstrip inflation year-on-year – highlighting the ongoing supply and demand pressures.
“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.”
