In a new report released by Goodlord, data reveals a persistent upward trajectory in property rents, showcasing a 7% year-on-year increase as of January. The Rental Index from the same source indicates that while void periods experienced a slight extension, they remained shorter in comparison to the same period last year.
As the calendar flipped to the new year, the robust momentum observed in the closing months of 2023 continued, with a notable 1% surge in rents during January. The average monthly rent for a property in England now stands at £1,154, marking a substantial 7% rise from the £1,076 reported in the previous year.
Regional Disparities in Rent Increases
The North West emerged as the leader in rent hikes, experiencing a significant 9% uptick compared to the same period last year. Conversely, the East Midlands witnessed the smallest difference, yet still recorded a substantial 5.5% year-on-year increase.
In Greater London, rents saw an almost 2% climb in January, bringing the average prices in the capital to £1,968. Despite briefly dipping below the £2,000 threshold over the winter, London remains the most expensive place to rent in England.
Void Periods and Market Insights
Void periods, which moved from 20 days in December to 22 in January, showed a marginal increase but remained lower than the average of 23 days during the same period last year.
William Reeve, Chief Executive at Goodlord, commented on the findings, stating, “We don’t expect to see huge market movements in January; the pace of new tenancies tends to take a few weeks to pick up post-Christmas. So to see this uptick in month-on-month rents – as well as the consistently sizeable year-on-year rises – is a sign that the market isn’t cooling down anytime soon.”
Reeve further noted, “With a new burst of activity on the sales side of the housing market, we could start to see some interesting knock-off effects on the lettings side in the coming months, which could bring additional turbulence.”
In summary, the latest data from Goodlord paints a picture of a rental market that continues to show resilience and growth, with regional disparities reflecting diverse economic factors. As the year progresses, the interplay between the sales and lettings markets will be closely monitored for potential shifts and impacts on the housing landscape.