UK Lettings Market Thrives with Significant Rent Increases in 2023
Published by Magnate Assets on
Jan 4, 2024
As we bid farewell to 2023, the UK lettings market stands tall with remarkable achievements, showcasing positive trends that bode well for property investors. The Goodlord Rental Index brings forth a tale of success, highlighting substantial year-on-year rent increases, marking a testament to the resilience and attractiveness of the rental landscape.
Impressive Yearly Surge:
Average rents throughout 2023 surged nearly 9%, presenting a robust contrast to the figures recorded in 2022. The annual averages witnessed a notable uplift of 8.8% year-on-year.
Summer Records Soar:
The summer of 2023 witnessed historic milestones as rental property costs breached the £1,300 mark for the first time. Responding to a supply crunch, tenants rushed to secure properties, setting record averages.
Source - Goodlord
London emerged as the regional champion, hitting a record-breaking £2,275 per property in September 2023. This marked a substantial 10% increase compared to September 2022. The North East boasted the lowest average rents, offering affordability at £874 on average throughout 2023.
Despite a slight month-on-month drop from November to December 2023, the year-on-year figures reflect a consistent rise, showcasing the resilience and stability of the rental market.
The lettings industry experienced unprecedented demand for rental properties, contributing to historically low void periods throughout 2023. The growing tenant population grappled with supply and demand challenges, underscoring the need for housing solutions.
Optimism for 2024:
Oli Sherlock, Managing Director of Insurance at Goodlord, expresses optimism for the future. Despite the industry catching its breath in December, signs point to another year of high rents, escalating demand, and ongoing regulatory changes in 2024.
As we reflect on the rollercoaster year that was 2023, the thriving lettings market signals not only resilience but also lucrative opportunities for investors. Stay tuned for an exciting journey in the dynamic landscape of the UK rental market.