UK Rental Market Set for Summer Surge as Rents Continue to Climb

The UK rental market is experiencing solid growth, with rents on housing continuing their upward trajectory towards the summer season. The most recent figures from Goodlord report that rental prices in England experienced steady growth in February, combined with a dramatic decrease in void periods, which is an indicator of firmer tenant demand.

Growing Demand and Rising Rents

English average rents increased by 4% against February 2024 to an average of £1,209 per property, from £1,162 in February 2024. While this represents a deceleration from the 5% year-on-year rise in January, the direction is still positive for landlords and investors.

Rental growth was most pronounced in the West Midlands, where rents climbed 7% year-on-year to £1,000 from £934. The East Midlands had the slowest year-on-year growth at 2.5%, where rents increased to £1,018 from £992.

Month on month, rents crept up by 0.2% from £1,207 to £1,209 per unit. The largest February increase in rents was experienced by the East Midlands, which increased by 3% (£987 to £1,018), followed by the South East, where the rise was 2% (£1,320 to £1,350). London, the North East, and the North West all saw small declines in average levels of rentals.

Voids Fall as Competition Among Tenants Heats Up

Perhaps the strongest measure of the health of the market is shrinking voids—how long a rental home lies empty between rentals. After their January highs, voids declined in all regions in February to an average of 20 days (from 24, a drop of 17%). That is the lowest average since October 2024, evidence that there's greater competition for the tenants.

Although the gap month in February is still marginally longer than the 18-day average previously recorded for February 2024, the declining trend indicates that rental demand is also going to remain robust as we approach the peak summer period.

What This Means for UK Property Investors

The statistics indicate a thriving rental market, and therefore, the appropriate time for house investors today is available. As demand continues to rise and void periods narrow, landlords can negotiate better to guarantee increased returns. As rents are also set to rise even further with the arrival of summer, investors willing to begin or grow their portfolios should move quickly in a bid to benefit from such conditions.

A Goodlord spokesperson added: "In the latest statistics, we still see evidence of increasing demand in a market that won't be slowing down. Voids have dropped again following record durations in January, and while overall February rents are slightly up on January's numbers, we don't always see month-on-month growth at this time of year."

For those investors who want to capitalise on the changing tide of UK property, staying well up to date with trends and new opportunities is paramount. We guide investors to the best property investment opportunities throughout the UK at Magnate Assets, providing real returns within an ever-expanding market.

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If you are looking to invest in UK property, it is time now to consider your options. Call Magnate Assets today for more details on undertaking rental estates and profitable investments with which you will be successful under prevailing market conditions.