The common value of lease in England reached a brand new excessive in July, the Goodlord Rental Index reveals.
The index, which has been monitoring the contracted rents of latest tenancies throughout England for over six years, exhibits that the typical month-to-month value of a rental property in England final month was £1,496.
The newest determine breaks the earlier rental document, set in July 2024 of £1,470.
It additionally discovered that month-on-month rents elevated by 18.3% in comparison with June.
Goodlord explains that in July demand is pushed up by pupil lets altering palms, graduates shifting to new cities, and households seeking to safe a house earlier than the brand new college time period.
On a regional foundation, the price of lease within the North West jumped by 42%, whereas South West residents noticed 34% will increase in common rents and people within the North East confronted an increase of 27%.
The smallest will increase had been present in Greater London growing by 4%, adopted by an increase of 6% within the South East.
Overall, renters in England who secured new properties in July are paying £231 per thirty days or £2,772 a yr, greater than renters who secured a brand new tenancy in June.
However, Goodlord means that the newest figures point out that the market could possibly be approaching rental value stability.
Throughout 2025 thus far, year-on-year rental inflation has been steadily lowering.
In July, costs had been up by 1.8% in comparison with the identical time a yr in the past whereas February recorded year-on-year inflation on the a lot increased price of 4%.
Elsewhere, the index confirmed that the typical void interval shortened from 20 days in June to 12 days in July, representing a discount of 40%.
This is barely barely increased than the void durations recorded on the similar time final yr, after they hit 11 days.
Commenting on the figures, Goodlord chief govt William Reeve says: “Throughout the yr the info has been pointing to 2 clear developments: firstly, that we had been prone to see new rental information set over the summer season and secondly; that the year-on-year tempo of value will increase total is beginning to sluggish.”
“This month’s figures present each predictions coming to cross. Across six years of working the Index, we’ve by no means recorded the next month-to-month rental common.”
“Likewise, each month of 2025 has introduced a softening of year-on-year lease inflation. So while the market continues to function underneath intense stress, the late autumn might carry one thing extra predictable when it comes to rents and voids.”
