Renters across England are facing a deepening crisis as average rent prices have rocketed past the £1,400 barrier for the first time, data reveals.
In the space of a week, two respected firms have revealed that rents are reaching record highs.
First up is the Goodlord rental index, which shows the rent figures for July saw a 7.5% year-on-year increase, with some regions witnessing even more dramatic rises.
The South West emerged as the epicentre of the rent price explosion, with rents surging by 10% compared to the previous year.
However, the West Midlands experienced the most modest growth at 4%.
Unprecedented tenant demand
Goodlord's data paints a picture of unprecedented tenant demand, with average void periods plummeting from 17 days in June to just 11 days in July.
The North West and South West recorded the most dramatic reductions, with voids shrinking to five and seven days respectively.
While renters grapple with escalating costs, there is a glimmer of hope in the form of rising salaries, the firm says.
Average pay for new tenants increased from £36,800 in June to £38,086 in July, representing a 3.5% uplift.
Unfortunately, this increase falls far short of matching the pace of rent rises.
'Remarkable increase in rents'
The firm's chief executive, William Reeve, said: "These July figures show another remarkable increase in rents.
"We've become used to seeing steady year-on-year increases since 2020, but there were indications that the striking numbers set last summer might start to level off. This argument has been dramatically disproven."
He adds: "July's figures have smashed rental price records and set a new baseline for the market's busiest months.
"For tenants, the new Government's moves to accelerate house building can't come soon enough."
Average rents outside London reached £1,314
Adding to the woes of renters, Rightmove's latest data also reveals an equally bleak picture as average rents outside London reached a new quarterly record of £1,314.
That's a 7% increase year-on-year and the capital also witnessed a record-breaking rise, with average rents climbing to £2,661.
Despite a slight improvement in rental supply compared to last year, the number of properties available remains significantly below pre-pandemic levels.
The intense competition for rental properties is evident in the number of enquiries per property, which stands at a daunting 17.
Market remains difficult for tenants
Rightmove's director of property science, Tim Bannister, said: "With 17 enquiries for every available rental property, the market remains out of balance and difficult for tenants.
"We need landlord investment to increase stock and help achieve a healthier supply and demand balance in the market.
"There is an opportunity to encourage landlords to continue to invest in good quality homes, for example through tax changes, incentives to help with energy-efficient upgrades or a general sentiment change in government towards working alongside and with landlords."
He added: "Support for both tenants and landlords will be key to achieving long-term stability in the rental market."
'A perfect storm for tenants'
The managing director of Accommodation for Students, Simon Thompson, said: "These unprecedented rent increases is a perfect storm for tenants.
"The shortage of available rental properties, coupled with soaring demand, means we won't be seeing an improvement soon.
"While rising salaries offers some respite, tenants need help to access cheaper rents - and that's where the government can act."
He adds: "By incentivising the building of new homes and providing support to landlords to boost rental stock numbers - most easily done via tax incentives - the country's private rented sector will continue to be difficult for tenants."
