The North East and West Midlands are the most affordable regions for tenants to rent in
Average monthly rents experienced a modest recovery in June, according to the latest rental index by lettings platform Goodlord.
Between May and June, the amount tenants paid in rent increase by 0.7% to an average of £907 per calendar month.
Despite being above the average throughout 2019 so far of £902 and February’s year-to-date low of £887, the index notes it is still below January’s yearly high of £917.
Four regions saw rents decline between May and June, with the South East experiencing the largest drop at 6.1%, followed by London at 1.3%, the East Midlands at 0.6%, and the West Midlands at 0.1%.
By contrast, average rents per calendar month increased by nearly 6% in Wales and the South West of England, whilst the North East and North West of England saw growth of 3.6% and 3.3% respectively.
Additionally, the index’s analysis reported that the North East and West Midlands were the most affordable areas for renters to live in June, both with an average affordability ratio of 4.1, compared to 2.5 which Goodlord considers the minimum affordable ratio.
Tom Mundy, co-founder of the lettings platform, said: “It’s been another interesting month across the UK. We continue to see a range of market factors affecting average rental prices.
“As we move into the summer – typically the busiest season for lettings – it will be interesting to see what the impact of the student housing churn and the repercussions of the tenant fees ban have on rental costs and void periods.”
The Tenant Fees Act, introduced at the start of June, is expected to save renters as much as £240 million each year, according to the Ministry of Housing, Communities & Local Government (MHCLG).