Syd’s Market Insights: Rents up by 7.3% across England
6th December 2023
In the dynamic landscape of the UK rental market, Goodlord’s latest Rental Index highlights the trends that unfolded in November. According to the report, year-on-year rents across England surged by an impressive 7.3%, showcasing the resilience and evolution of the rental sector compared to the figures from 2022.The standout revelation from Goodlord’s findings is the significant year-on-year increase in average rents for new tenancies confirmed in November. In comparison to the £1,087 average in November 2022, the figure for November 2023 stands at £1,166, marking a robust 7.3% rise.
Delving into regional statistics, the North West emerges as a hotspot, experiencing an impressive 11% surge in rents compared to the same period last year. Notably, other regions such as the East Midlands, North East, South East, South West, and West Midlands all posted commendable increases, surpassing the 7% mark. Contrary to the seasonal dip traditionally witnessed between October and November, this year presented a deviation from the norm. Despite entering a period typically associated with slower lettings activity, November rents managed to hold their ground, registering only a marginal decrease of less than 2% compared to October. The average rent now stands at £1,166 across England.
The East Midlands, South East, and West Midlands exhibited remarkable stability, with negligible price movements of less than 1%. However, Greater London deviated from this pattern, experiencing a 4% drop in average rent for new tenancy agreements. This decline, following a period of escalating prices, reverts averages back to levels observed in June and July.
The average void period extended from 18 to 20 days in November, reflecting an 11% increase. This aligns with the established trend of lengthening void periods during this period, maintaining consistency with the 20-day void period recorded in November 2022. While most regions maintained stability in void periods compared to October, the South East stood out by recording a decrease from 18 to 17 days. On the flip side, Greater London and the South West witnessed notable increases, rising from 12 to 16 days and 16 to 26 days, respectively.
Not only did rents experience fluctuations, but tenant demographics also underwent subtle shifts in November. The average salary of a renter confirming a new tenancy increased by 2%, reaching £36,871 compared to October’s figure of £36,135. Additionally, the average age of tenants taking out tenancies in November nudged up to 34, a slight increase from the 2023-to-date average of 33 years.
William Reeve, CEO of Goodlord, provided valuable insights into the data, stating, “Whilst month-on-month patterns continue to follow the predicted seasonal ebbs and flows, the year-on-year data highlights how much the market has changed over the last 12 months. Rents are up by over 7% compared to November 2022, reflecting the intensity of demand the market has experienced since then.”
If you’re intrigued by these insights and wish to delve deeper into the numbers, feel free to contact myself or the wider team here at Coapt to discuss how we can help you achieve your property portfolio ambitions. You can also receive a free valuation here to gain insight as to how much your rental property is worth.
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