Rents in the UK Have Increased for the Last Six Months in a Row

Rent prices in England have increased for the sixth month in a row, according to the latest Rental Index by Goodlord. June also witnessed a significant decrease in vacant properties, indicating a growing demand as we approach the busiest season for rentals.

Among the eight regions monitored by Goodlord, rent prices rose in seven during June. The average cost of renting a property in England now stands at £1,148 per calendar month (pcm), reflecting a 3.3% increase from May's average of £1,111pcm.

The South West experienced the largest surge in prices, with rents escalating by a substantial 9% in June, jumping from £1,092pcm to £1,191pcm.

Only one region, the East Midlands, saw a decline in rent prices, experiencing a 1.08% drop.

Greater London boasts the highest rental prices, with an average monthly cost of £1,965.

Rent prices have been steadily climbing for the past six months and have reached their highest level since September 2022. In September of last year, average rents peaked at £1,249.

Cost of rent per property:

Region

May 2023

June 2023

Month-on-month % change Previous Month

East Midlands

£941

£931

-1.08%

Greater London

£1,903

£1,965

3.28%

North East

£818

£865

5.81%

North West

£888

£917

3.24%

South East

£1,219

£1,229

0.81%

South West

£1,092

£1,191

9.11%

West Midlands

£919

£943

2.62%

England

£1,111.28

£1,148.70

3.37%

During yet another month of rising rental costs, another significant indication of a heating market for the summer can be observed in the void statistics.

In June, void periods in England saw an average reduction of three days, decreasing from 19 to 16 days on average, marking a 15% decrease.

The most notable change occurred in the South West, typically a region with average void periods. However, a surge in demand in the area resulted in a substantial 45% decrease, reducing voids from 20 days to just 11. As a result, the South West had the lowest void periods in England during June.

Three other regions experienced double-digit declines in voids: the North East (-16%), North West (-15%), and the West Midlands (-21%).

However, two regions witnessed an increase in voids during June. The East Midlands saw a 15% rise (from 20 to 23 days), while Greater London experienced a 16% increase (from 12 to 14 days).

Voids per region

May 2023

June 2023

Month on Month % change

East Midlands

20

23

15.0%

Greater London

12

14

16.7%

North East

18

15

-16.7%

North West

20

17

-15.0%

South East

17

16

-5.9%

South West

20

11

-45.0%

West Midlands

23

18

-21.7%

England average

19

16

-15.8%

According to Oli Sherlock, the director of insurance at Goodlord, there has been a consistent upward trend in rental prices for six consecutive months, and this trend is expected to persist throughout the summer. Sherlock also noted a significant decrease in void periods during June, indicating a heightened demand as tenants swiftly secure available properties as soon as they become available.

Sherlock further commented that it is likely that both prices and demand will reach their peak as the academic year commences. While the rental market typically cools down during the autumn and winter seasons, there is a possibility that the pressure on rental stock could persist if supply issues continue, affecting all participants in the industry.

Full data breakdown Sept 2022 – June 2023:

 

Sept 2022

Oct 2022

Nov 2022

Dec 2022

Jan 2023

Feb 2023

Mar 2023

Apr 2023

May 2023

Jun 2023

East Midlands

£1,010

£940

£913

£894

£924

£940

£914

£946

£941

£931

Greater London

£2,055

£1,909

£1,883

£1,843

£1,851

£1,842

£1,855

£1,897

£1,903

£1,965

North East

£890

£810

£789

£800

£778

£796

£801

£819

£818

£865

North West

£989

£903

£858

£855

£862

£889

£877

£880

£888

£917

South East

£1,420

£1,194

£1,187

£1,160

£1,177

£1,208

£1,202

£1,210

£1,219

£1,229

South West

£1,422

£1,126

£1,095

£1,066

£1,063

£1,054

£1,080

£1,062

£1,092

£1,191

West Midlands

£962

£901

£887

£882

£879

£893

£906

£908

£919

£943

England

£1,249

£1,111

£1,087

£1,071

£1,076

£1,089

£1,090

£1,103

£1,111

£1,148




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