Rents remain higher than this time last year in 2024 despite falling for fifth consecutive month

Despite rents in England falling for the fifth consecutive month following a summer of price rises. Overall, December rents were down by nearly 2% month-on-month, meaning rents last month were 19% lower than the averages recorded in July 2024. This is attributed to seasonality of the lettings market which sees summer market command high rents vs winter months which are know to be slow.

However, rents last December were still up by over 3% year-on-year, highlighting an ongoing rise in prices albeit a significant reduction in the pace of these increases compared to earlier in 2024.

December rents up 3%+ year-on-year

Rents in December 2024 across England were £1,185 on average. This compares with an average of £1,147 recorded in December 2023 - meaning year-on-year prices are now up by 3.3% compared to 2023.

The South East saw the biggest year-on-year change with rents up by 5.7% compared to December 2023.

December’s figure of 3.3% marks the smallest year-on-year rise recorded for rent in 2024. In contrast, rents in August were 10% higher year-on-year compared to August 2023.

December rents were vastly reduced compared to the summer of 2024

Across 2024, the annual high for rents was recorded in July, when average prices rose to £1,470 per property, per month. That means December 2024 rental averages were a huge 19% lower than July 2024 rents.

The lowest rents in 2024 were recorded in January when prices were £1,154 on average.

Looking ahead for 2025 we believe this could be "the calm before the storm" as rents will see another major spike in 2025. With the introduction of the Renters’ Rights Bill, bidding wars will not be allowed, meaning asking prices are likely to be set that bit higher.

Additionally new compliance requirements landlords must meet will also drive up costs, some of which could be passed on to tenants, just like we aw in the tenant fee ban. And as we continue to see demand continues to outstrip supply across the rental market. So whilst 2024 was a huge year for lettings, 2025 has the potential to bring even more upheaval!

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