In a tumultuous year for England’s housing market, 2023 saw a staggering 8.8% surge in rents, hitting an average of £1,182, compared to £1,086 in 2022, as per a leading rent index disclosed by Goodlord.
The unprecedented spike, revealed in Goodlord’s report, highlighted a summer peak where rents breached £1,300, marking a historic milestone in the private rented sector. The heightened demand for limited rental properties fueled this surge, notably between July and September.
During this period, Goodlord noted a peak of £1,367 per home in July, significantly higher than the £1,239 recorded the previous year, showcasing the intense competition among tenants for available housing options.
Oli Sherlock, Goodlord’s managing director of insurance, remarked on the market’s rollercoaster ride: “Rents ending the year significantly up compared to 2022 figures… unprecedented levels of demand for rental properties… entrenched supply and demand issues facing our housing market.”
Sherlock continued, stating, “Many agents will have been catching their breath over December, but it’s looking like 2024 will be another year of high rents, escalating demand, and ongoing regulatory changes which will keep the whole market on its toes.”
The report highlighted London as the leader in escalating rents, with September 2023 witnessing an unparalleled average of £2,275, compared to £2,055 in the same period of the previous year.
Regional disparities were evident, with the North East offering the most affordable rents at an average of £874, while Greater London’s average soared to £1,974.
Analysing December’s figures, rents surged by 7% compared to the previous year, hitting an average of £1,147. However, customary holiday season lulls resulted in a 1.7% decline in rents compared to November.
Outside the capital, Greater London continued to command the highest rents at £1,932, contrasting starkly with the North East’s significantly lower average of £853, showcasing a staggering 50% gap between the two regions.
Goodlord’s data also reflected on void periods, noting a consistency with the previous year’s average of 20 days in December. Nonetheless, July emerged as a standout, reducing the average void period to an impressive nine days across England, with the North East landlords experiencing the shortest void, averaging just six days in July.