The most recent Rental Index released by PropTech provider Goodlord has documented an increase in rent prices and a decrease in void periods over the past month, resulting in an average rent that is seven percent higher than the same period in 2023.
In February alone, average rents experienced a one percent rise, bringing the average cost per property in England to £1,162, up from £1,154 in January. Despite a historical trend of rent decreases between January and February, this year witnessed a steady increase, with rents having dipped in February during four out of the last six years, according to Index figures.
The current average of £1,162 signifies a seven percent year-on-year increase in rent compared to February 2023. Analyzing the data for February 2024 versus February 2023, the South West exhibited the most significant rise in rents, with prices increasing by 11 percent. Following closely is the North East, experiencing a 7.5 percent surge. Conversely, the West Midlands saw the smallest year-on-year change, with tenants paying 4.5 percent more.
February witnessed the most substantial regional rent increase in the South West and the South East, where rents rose by 2.5 percent. The South East now boasts an average rental property price of £1,293, with the South West trailing closely at £1,173. On the flip side, two regions saw a decline in prices during February - the West Midlands dipped by 2.0 percent, and Greater London by 1.0 percent.
Highlighting the sustained demand for rental properties across England, void periods, the average duration a property remains vacant between tenancies, also decreased in February. Average voids reduced from 22 days across England to 18 days, marking an 18 percent reduction.
The most notable change in void periods occurred in the North East, where voids decreased from 24 days in January to just 17 days in February. All regions reported shorter voids, except for the South West, where void periods remained constant at 20 days month-on-month.
William Reeve, Chief Executive at Goodlord, commented, "We don’t typically see a surge in rents during February. It’s usually a slower month following the post-Christmas demand spike seen in January. The rise this month indicates the ongoing market pressure and a shortage of available stock, reflected further in the shortened voids across England. Presently, the market is consistently delivering year-on-year statistics with rent increases hovering around the seven percent mark. All eyes will be on whether this trend starts to decline as we approach summer, following last year’s record-breaking numbers, or if new records will be set."
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