All signs point to another exciting year for the rental market according to the latest market snapshot from PropTech firm, Goodlord. *
Their findings revealed that void periods decreased over all UK regions in February, with a 26% drop while rents continued on their gradual upward trajectory to return to a four-month high. *
Additionally, Goodlord reported a significant reduction in the average void period for a rental property in England during the second month of 2023. *
The national average dropped by more than a quarter, from 23, down to 17 days, reaffirming that demand is continuing to strengthen amongst tenants all over the UK. *
The most notable change was found in the North West, where voids deteriorated from 27 days in January, to just 18 days a month later – a sharp drop of a third. * Following closely behind, the East Midlands also recorded a decline in voids by over 30%, with periods between tenancies going from 29 days to a mere 20 – a 31% reduction. *
The West Midlands also saw voids decrease by more than 20%, marking an advantageous time in rental market history for new investors and seasoned landlords alike. The new overall average void period for England has now reached 17 days – the lowest seen since September 2022, when void averages stooped to 15 days. *
Unsurprisingly, the seesaw nature of supply and demand has resulted in rents rising, as Goodlord recorded the new average cost of a rental home in the UK rose to £1,089.04, bumping up January’s figure by 1%. *
While last year’s figures remain tough competition, February’s figures are the highest rental averages recorded since October 2022. *
The biggest price hike was found in the North East, which saw prices rise by a whopping 3% in just one month. Meanwhile, both Greater London and the South West saw fractional decreases in rental asking prices. *
When assessed year on year, Goodlord found that the cost of rent is now up by 12.5%. *
Tom Mundy, the chief operating officer of Goodlord, comments: “December and January are traditionally slightly quieter times for the lettings market and, given the intense demand the rental sector has seen over the last year, I’m not surprised to see how pace has increased during February.
“The big drop in voids is a clear reminder that housing stock is low and tenants are moving quickly to secure properties – everything listed is getting snapped up extremely quickly. This is linked to the renewed increase in rental costs. Although we’re not at the cost averages we saw during last summer and early autumn, the price per property averages are significantly higher than this time last year.
“These trends are being intensified by a rise in landlords leaving the market, pointing to an urgent need for decision makers to incentivise landlords to stay in buy-to-let whilst ramping up house building efforts. We believe the industry is facing unsustainable pressures and repeat our call for the Government to rapidly take meaningful action to help landlords and tenants alike.” *
Goodlord*
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