Rents spike in June – PropertyWire

Rents rose by 3% in June from the month before – including a major spike in the South West, Goodlord’s Rental Index has revealed.

The increase takes the average cost of renting to £1,265 in June, a monthly increase of £39.

The South West recorded a major spike in prices with rents up by a huge 14%, to £1,396. This means they have outstripped the South East (£1,366) as the most expensive area to rent outside of London.

As rents soared in some areas, two regions recorded a dip in average prices. The East Midlands and the West Midlands both saw rents reduce by slightly less than 2% compared to May’s prices.

William Reeve, chief executive of Goodlord, said: “The data is showing us two really interesting forces at play. On the one hand, we’re seeing rents hotting up as we enter summer – all signs point to there being a new rental price record set this season.

“However, on the other hand, the narrowing of the year-on-year rental rises shows us that some of the long-term heat is starting to seep out of the system.

“This could be an early indication that supply and demand is beginning to recalibrate, although the upcoming passing of the Renters’ Rights Bill – which is unpopular with landlords – could potentially spark a buy-to-let sell off that tips the balance back in the other direction.”

All but one region recorded a year-on-year increase, with the most significant jump being seen in Greater London, where prices are up by over 5% compared to the same time last year. This was followed by the South East, which recorded a year-on-year rise of over 4%.

On average, void periods fell from 21 days in May to 20 days in June.