Rents rise to record levels and are up 3% in one month in the South West 

The likelihood of tenants struggling to pay rent is growing every month, experts have warned, as latest data shows rents rising to record levels.

Average rents in Britain stood at £1,213 a month in May, up 1.2 per cent from £1,199 the previous month, according to HomeLet.

Andy Halstead, of HomeLet, said: ‘Rental prices remain high, which brings a level of risk for both tenants and landlords. 

‘We are again urging landlords to consider Rent Guarantee insurance as the likelihood of tenants struggling to pay their rent grows with each passing month.’

The London rental market in particular shows few signs of slowing down – average rents in the capital climbed to £2,039 a month, the highest ever recorded, according to HomeLet.

The cheapest rental area in Britain is the North East, which saw another dip, dropping 2 per cent a month to £632 a month.

Mr Halstead said: ‘The fact that the London market is rising in terms of average price while the cheapest area in the country – the North East –  is falling shows that the level of demand somewhat depends on location, but as a broad rule, there is a shortage of rental properties to meet demand, with many prospective tenants facing a real battle to secure a property. 

‘This frenzied market is likely to see prices continue to rise in the coming months.’ 

The cheapest rental area in Britain is the North East, which saw another dip, dropping 2 per cent a month to £632 a month. 

The average rent in London in May climbed to £2,039 a month, meaning it is the highest ever recorded

The frenzied rental market is likely to see prices continue to rise in the coming months, experts have warned

It follows another rental index being issue – from Goodlord, – which showed that six out of eight regions saw rents rise in May, with average rents standing at £1,111 a month in England, up from £1,103 in April.

It said rents have risen for five consecutive months, with prices now at their highest  since September 2022. 

The biggest shift in prices during May was recorded in the South West, where rents rose nearly 3 per cent, up from £1,062 to £1,092.

Only two regions recorded a decline in the cost of rent, although these were small. The East Midlands saw costs drop by 0.47 per cent and the North East by 0.19 per cent

The amount of time a property is not rented out and is left empty – known as a void period – held steady in May, suggesting that market demand remains strong as the rental market heads into summer.

The Goodlord index revealed that the average void period in England remains at 19 days, which is the same figure as recorded in April.

The highest voids can now be found in the West Midlands, where averages stand at 23 days. London retains the title for lowest void periods, currently at 12 days.

Three regions saw a notable shift in void periods during May; with the East Midlands, North West and South West all seeing void lengths drop by more than 9 per cent.

Oli Sherlock, of Goodlord, said: ‘As we head into what are traditionally the busiest months of the lettings calendar, it remains to be seen as to whether we’ll hit the same rental cost highs recorded last summer.

‘But the data is pointing to the ongoing rise in prices continuing and, with voids also holding firm, the market is definitely primed to heat up as we head into June.’

The rise in rents follows a decline in house prices, according to Britain’s biggest building society.

The average house price recorded its biggest annual fall in nearly 14 years in May, as Nationwide warned that housing market challenges look set to increase in the short term.

Property values fell 3.4 per cent annually in May, representing the biggest drop seen since July 2009 when an annual fall of 6.2 per cent was recorded, Nationwide said.

The average house price fell 0.1 per cent monthly, against a 0.4 per cent upturn in April.

The average UK house price in May was £260,736, according to Nationwide’s index.