The latest data in the Goodlord Rental Index 4 shows that it’s a great time to be a private
landlord, with rent income continuing to grow across the country.
The average cost of a new rental property is now 7% higher than it was this time last year,
with £1,438 on the board for August 2024, compared with £1,347 for the same period in
2023. With that said, some landlords are faring even better than others thanks to regional
disparity. Prices have increased above average in the Southwest with a 13% year-on-year
increased, while there’s been a more than 9% growth in the North East and the East
Midlands.
One thing that buy-to-let landlords do need to be mindful of in order to retain a high level of
occupancy is tenant incomes, which haven’t risen in line with rising rents. Data shows that
year-on-year, incomes are up just 0.86% on last August, leaving tenants to finance the gap
between salary growth and the cost of renting a property.
The CEO of Goodlord, William Reeve indicated this could become a consideration for
landlords when lease renewals are on the table. He commented, “Rental cost figures from
the last two months closely mirror the trends we saw in 2023; a big surge upwards in July, with August figures dipping slightly but staying very high overall. Rents are now up 7% year-
on-year, but salaries have only recorded a 1% uplift across the same time period: this is
really putting the squeeze on tenants, with many likely to be facing affordability issues when
they come to renew or take out a new lease.”
