UK Rental Market Continues to Thrive: Rents Rise and Voids Remain Stable in May
Published by Magnate Assets on
May 30, 2023
The UK rental market continues its positive trajectory as the cost of rent across England increased for the fifth consecutive month, as reported by Goodlord's latest rental index.
Market demand remains robust as evidenced by the steady void periods, indicating a strong start to the summer season, traditionally the busiest time of the year for the sector.
In May, six out of the eight regions monitored by Goodlord experienced rent increases. The average cost of rent per property in England now stands at £1,111, a 1% rise from £1,103 in April.
This upward trend in rents has persisted for five consecutive months, reaching the highest recorded level since September 2022, indicating a positive growth trajectory for the market.
The most significant price shift in May was observed in the South West, where rents increased by nearly 3%, climbing from £1,062 to £1,092.
Although two regions saw a slight decline in rental costs, namely the East Midlands with a 0.47% drop and the North East with a 0.19% decrease, the impact was negligible.
On the other hand, void periods remained stable across England, with the average remaining at 19 days, the same figure reported in April.
Among the regions, the West Midlands recorded the highest void periods, averaging 23 days. In contrast, London retained its title as the region with the lowest void periods, currently standing at 12 days.
Noteworthy shifts in void periods were observed in three regions during May: the East Midlands, North West, and South West, which all experienced a drop of over 9% in void lengths.
Oli Sherlock, director of insurance at Goodlord, commented on the current rental market outlook, stating, "As we enter the traditionally busy months of the lettings calendar, it remains to be seen whether we will reach the same rental cost highs seen last summer. However, the data indicates a continued rise in prices, and with voids remaining stable, the market is poised to heat up as we head into June."
Investors in the UK property market can find optimism in the sustained growth and stability of the rental sector, making it an opportune time to explore investment possibilities.