Rents continue to rise in most of England, London sees biggest jump yet
9th May 2023
According to the latest Goodlord Rental Index, the average rents in London reached a 2023 high this month, while rents decreased in the SouthWest. However, the rest of England saw rents rise steadily, with some areas experiencing an increase of four days in void averages. In this article, we will take a closer look at the latest rental figures and explore what they mean for landlords and tenants across the country.
Rents have continued to rise steadily this month, with many areas experiencing their highest average rents of the year so far. While the West Midlands and South East saw a fractional month-on-month increase of 0.22% and 0.68% respectively, some areas, including London, saw more significant jumps. In fact, April marks the biggest jump in average rents for Londoners so far in 2023, with the average rent in the capital increasing by more than £40. Rental prices in London are now 11.4% higher than they were in 2022.
The East Midlands and North East also saw considerable jumps in rent prices, rising by 3.51% and 2.27% respectively in these areas. The South West was the only area of the country where rents decreased, with a -1.6% drop in average rent prices. Rent prices in the South West fell sharply in October 2022 and have been decreasing steadily ever since. Overall, the average cost of rent across England this month was £1,103.19 – a 1.16% increase on March’s average and an 8.98% year-on-year increase.
Rising Void Periods
The average void period for a rental property either stayed the same or increased in all areas of England this month. The most significant increases in the number of void days came in the South West and the North West, which both saw jumps from 18 to 22 days – an increase of 22.2%. Void periods in the South East and North East remained the same at 18 and 17 respectively. England’s average voidage period inched up from 18 to 19 days in April – a 0% year-on-year increase, suggesting that this month’s void average is consistent with seasonal trends.
What Does This Mean for Landlords and Tenants?
Oli Sherlock, Director of Insurance at Goodlord, commented on the latest rental figures: “After a steady start to the year – with barely any significant change at all between February-March – we’re seeing movements in the rental sector. Rents continue to slowly and steadily rise, which is a pattern we would typically expect to see during this time of year as more contracts come up for renewal. As we head towards the summer months, we will be keeping a close eye on void periods as more and more tenants look for new homes.”
For landlords, the rise in rent prices may provide an opportunity to increase rental income. However, it is important to be mindful of the rental market in your specific area and ensure that any increase is reasonable and in line with current market trends. It may also be beneficial to consider offering longer tenancies or other incentives to retain current tenants. Contact a member of the Coapt team today to receive a free, accurate, and data-driven valuation to maximize your investment.
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