The July Goodlord Rental Index has reported unprecedented rental market figures, marking the highest averages ever recorded.

The average rental cost in England soared to £1,470, a 7.5% increase from the previous year, surpassing last summer’s anticipated ceiling. In July 2023, the average rental price in England was £1,367, the highest recorded by the Index until this year. July 2024 marked the first instance of a national rental average exceeding £1,400.

Regionally, the South West experienced the largest year-on-year increase, with rents rising by 10%. Conversely, the West Midlands saw the smallest increase at 4%.

Month-on-month, rents across England saw a dramatic 20% rise, jumping from £1,225 per property in June to £1,470 in July. The North West and South West witnessed particularly notable increases, with rents for new tenancies soaring over 40% from the previous month. In the East Midlands and North East, demand drove monthly costs up by more than 20%. The smallest changes were observed in Greater London (+5%) and the West Midlands (+3%).

Void periods across England shortened from 17 days in June to 11 days in July, a 35% reduction. The shortest voids were recorded in the North West at five days (down from 17) and the South West at seven days (down from 11). Both regions also saw the most significant increases in rental costs over the month. Despite being at a 12-month low, void periods are slightly longer year-on-year, with an average of nine days in July 2023.

The Index also noted an increase in salaries for renters signing new tenancy contracts in July, with average pay rising from £36,800 in June to £38,086 in July, a 3.5% increase. However, this lagged behind the month-on-month surge in rental costs.

William Reeve, CEO of Goodlord, remarked, “These July figures show another remarkable increase in rents. We’ve become used to seeing steady year-on-year increases since 2020, but there were indications that the striking numbers set last summer might start to level off. This argument has been dramatically disproven.

“July’s figures have smashed rental price records and set a new baseline for the market’s busiest months. At the same time, voids have notably shortened, further highlighting the squeeze on supply. For tenants, the new government’s moves to accelerate house building can’t come soon enough.”