Rents in England have reached a record high, soaring 19 per cent in a month – as prices are being pushed up by students seeking accommodation for the new university term.
Average amounts passed £1,300 a month in July, up an eye-watering 19 per cent compared to June.
The Goodlord Rental Index also found that the amount of time that a rental property sits empty between tenancies has dropped to only nine days.
Average rent in England reached £1,367 a month per property, up 19 per cent in a month
The fiercely competitive rental market has seen the average cost of rent in England reach £1,367 a month per property.
It is the highest level ever recorded by the index and is 9.4 per cent higher than the previous record set in September last year, at £1,249.
July’s average cost is a massive 19 per cent higher than June’s average, with students understood to be fuelling the increase.
The average month-on-month increase in rent during the year to date has been 1.3 per cent. Rents on tenancies completed in July rose by 10 per cent year-on year.
Goodlord suggested the volume of larger, more expensive properties being let to groups of students in July ahead of the new academic year contributed to the rapid rise in average costs.
William Reeve, of Goodlord, said: ‘This month’s numbers are quite staggering. In July we do usually expect to see an increase in rents and a reduction in voids – and all indicators pointed to a particularly red hot summer for the rental market, if not the weather.
‘So while the 10 per cent year-on-year increase is a big shift, the sharp drop in void periods is also particularly surprising.
‘Digging into the data, we can see a large number of multiple occupancy student lets being confirmed during July, which has pushed up average prices in key regions such as the North East and South West.
‘Traditionally, rental costs continue to increase until September before cooling off in the autumn, which could mean these aren’t the last records we’ll see broken before the year is out.’
July’s average rental cost is a massive 19 per cent higher than June’s average, with students understood to be fuelling the increase
In July, there were significant rent increases in the East Midlands, up 21 per cent, and the North East, up 25 per cent.
Greater London, the South East and the West Midlands all saw more modest increases.
The West Midlands is currently the cheapest region for tenants, with Greater London the most expensive.
The Goodlord Rental Index revealed average rental rises in regions around the country
As the cost of rent spiked, the length of time that properties sat empty between tenants headed in the other direction. Void periods dropped 44 per cent to an average of only nine days in July.
This is down from 16 days in June, and is the lowest ever recorded by the Index. The previous record was set at 10 days in July 2022.
The North East and the South West saw the shortest voids, recording void periods of just six days on average.
It is a 60 per cent and 45 per cent reduction respectively, compared to June’s void figures for those regions.
The longest void periods were recorded in the West Midlands at 14 days, though this was still a decrease of 22 per cent compared to June.
Greater London saw the smallest month-on-month change, a 21 per cent reduction in voids, from 14 days to 11 days.
Goodlord revealed the number of days between tenancies by region, in June versus July
Growing student numbers create housing challenge
It comes as separate research by PwC found that as students prepare for the start of the new academic year in September, intense demand for accommodation coupled with growing rental costs risks impacting the student experience.
It suggested that growing student numbers, from the UK and internationally, have resulted in a swell of students in certain cities.
For example, universities across Glasgow have seen around 18,500 more students since the 2019/20 academic year, and Bristol and Manchester have seen increases of 10,500 and 10,000 students respectively.
Damien Ashford, of PwC, said: ‘Many students may face limited choice in relation to the mode and location of their studies, coupled with reduced access, choice of location and quality of accommodation they can afford.
‘This may add to existing concerns over students’ mental health and social wellbeing, and more students are likely to be unable to manage financially.
‘The most disadvantaged students will be hit hardest, leading to narrowing access to higher education and increasing dropout rates.’
Paul Humphreys, of StudentCrowd, said: ‘A student’s accommodation experience has a major impact on their ability to thrive at university.
‘In most cases, students enjoy an excellent experience in Purpose Built Student Accommodation – covering both university-owned and private.
‘We see this in the average review score for accommodation – 4.3 out of 5 in 2023 so far. However, the sector must pull together to provide affordable accommodation across all cities in the UK.’
