A surge in expensive student housing saw average rents and cancellation periods break records in July, according to Goodlord.
The digital rental platform’s monthly rental index shows that average rent prices in England jumped by 18% last month, with higher than average demand for student rentals, including expensive properties snapped up by students.
As a result, the average rent rose from £1,050 last month to a record £1,238 in July, with growth recorded across all regions of England.
The biggest increase was seen in the North West, where prices soared by 44%, the study said. Students renting accommodation in the region, which is home to several universities in Manchester and Liverpool, are behind the surge. Average spend in the North West is now £1,213, up from £838.
The next biggest increase was in the South West – home to the universities of Bristol, Bath and Exeter – with average prices rising by 36%, bringing the average rental price of a property in the region to £1,539 from £1,130.
The most expensive place to rent in England, Greater London, recorded the least dynamic in average prices, increasing by 3% to £1,797 per property over the period.
Last month also saw an all-time low for canceled bids, falling 41% from 17 days to 10 days. In every region, voids have decreased significantly.
The report said: “Again, this was driven by a surge in student rental demand, with the North West and South West seeing the biggest proportional fall in vacancies.”
The lowest voids in England are in the south-west at five days, followed by the north-west at seven days.
The West Midlands had the highest level of empty days at 17 days, although this was a 29% drop from 24 days a month earlier.
The index added that average tenant income increased by 1% to £29,637 per tenant in July compared to June. However, the biggest shift in wages was seen in the East Midlands, where renters’ take-home pay jumped 15% to £30,918 compared to last month.
Goodlord chief operating officer Tom Mundy says: “It’s been a stunning month for the market with a surge in high-value student homes.
“The heat has failed to cool demand and instead we are seeing record high rents and record low vacancies. The rental market is incredibly busy and demand is showing no signs of abating this summer. Agents are working hard to ensure quality homes remain on the rental market and tenant demand is met.”