0:02 AM, 30th June 2023, About A year ago
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A rental index reveals that England’s rental market has caught fire, with rents rising for the sixth straight month in June and voids plunging.
The latest data from Goodlord points to an ever-increasing demand for rental properties – as the peak season for lettings approaches.
The survey found that seven out of the eight regions surveyed saw a surge in rent prices, pushing the average rent across England to £1,148 per property.
That is a 3.3% increase from May’s £1,111.
Goodlord’s director of insurance, Oli Sherlock, said: “We’ve now seen six consecutive months of price rises and we predict this to continue throughout the summer.
“The fairly sizable drop in void periods during June also reflects this intensification of demand, as tenants snap up properties as soon as they come on the market.”
He added: “We’ll likely see prices and demand peaking as we hit the start of the academic year and, whilst things normally begin to cool down over the autumn and winter, if supply issues continue, we could see this pressure on rental stock continue, affecting all industry stakeholders.”
The South West region became the hotbed for the largest price hike in June, with rental rates soaring by a staggering 9%, jumping from £1,092 to £1,191.
On the flip side, the East Midlands was the solitary region that bucked the trend, witnessing a slight dip in rental prices by 1.08%.
The crown for the priciest rentals unsurprisingly goes to Greater London, where the monthly rental rate averages at a hefty £1,965 per property.
The ongoing rise in rents has led to a six-month rally, pushing prices to their highest point since September 2022.
Back then, the average rents reached a high of £1,249 in September, which was the highest average rents recorded last year.
As England’s rental market continues to sizzle, there has also been a big drop in void periods – which also points to signs of strong tenant demand.
June saw an impressive 15% decrease in the average void period across England, shrinking from 19 days down to 16.
The South West region, typically a moderate performer in terms of void averages, witnessed a remarkable decline in voids from 20 days to just 11 – a 45% drop.
The region is also where the shortest void periods in England for June were.
Other big falls in voids include the North East, North West and the West Midlands with drops of 16%, 15%, and 21% respectively.
Landlords in the East Midlands experienced a 15% increase, from 20 to 23 days, while landlords in Greater London saw a 16% rise, with voids going from 12 to 14 days.
