Substantial 20% Surge in Average UK Rents Within a Month Sets Astonishing New Record
Published by Magnate Assets on
Aug 4, 2023
Research conducted by Goodlord has revealed that the mean rental price has soared beyond £1,300 per month, marking an almost 10% increase from the previous highest record.
In the preceding month, rental rates escalated to an unprecedented £1,300, depicting an approximately 20% surge compared to figures from June, as indicated by new research.
Fresh data disclosed by Goodlord, a firm specializing in tenant referencing, has unveiled an average rental rate of £1,367, manifesting a noteworthy 9.4% elevation from the former record, which was set at £1,249 back in September 2022.
The Goodlord Rental Index, an analytical tool examining tens of thousands of finalized tenancy agreements monthly, has now reported the most elevated average rental charges since its inception in January 2019.
According to experts at Goodlord, the heightened demand for larger, more upscale properties leased by student groups in July has substantially contributed to this rapid escalation in average costs.
The accelerated pace of student accommodations coupled with the surge in interest rates and a limited property inventory are believed to have collectively generated an upward pressure on rental prices.
ACROSS EVERY REGION
The analysis revealed that rental prices witnessed an upswing across all regions monitored by the index. Particularly significant surges were noted in the North West, experiencing an impressive 48% hike in rates (from £917 to £1,358), and in the South West, witnessing a substantial 45% uptick in average rates (£1,191 to £1,725).
Prominent increases in rental rates were also documented in the East Midlands (21%) and the North East (25%).
Comparatively more moderate escalations were observed in the West Midlands, Greater London, and the South East.
Among these regions, the West Midlands presently offers the most affordable rental rates, with Greater London maintaining its status as the most expensive.
DECREASE IN VACANCIES
Concurrently with the surge in rental rates, instances of vacant rental properties substantially diminished, recording the shortest vacancy periods documented by the index. Void periods underwent a drastic 44% reduction, averaging merely nine days in the month of July.
William Reeve, Chief Executive Officer of Goodlord, remarks, “The figures for this month are truly astonishing.”
Reeve adds, “Historically, rental costs tend to sustain their ascent until September, subsequently stabilizing during autumn. This potentially implies that these new records might not be the final ones shattered before the year concludes.”