The lettings platform Goodlord reported an increase in the cost of rent in seven of the eight regions they monitored during June. Here are some observations in the lettings market this month:
Cost to rent
In line with this, the average cost of rent in England is now £1,148, an increase of 3.3% from £1,111 in May.
The South West was home to the largest price rise, where the average rent increased from £1092 to £1,191 – a rise of 9.0%
The only region which saw a decline in the cost of rent was the East Midlands with a decrease of 1.08%.
Naturally, Greater London was home to the highest average rent costs – where the average cost lies just shy of £2,000 at £1,965 per month.
This month marks the sixth consecutive month of rental cost price increases.
The prices are now at their highest level since September 2022. Last year’s rental prices peaked in September when costs hit £1,249.
Void periods
Another statistic which shows that the market is warming up for the summer months is the void period figures:
Void periods in England fell by three days in June 2023, dropping from 19 to 16 days on average, a reduction of 15%.
In accordance with the increase in average rental prices, the South West also recorded the largest drop in average void periods.
In the wake of the surge in demand in The South West, void periods dropped from 20 days to 11, a decrease of 45%, This figure is particularly noteworthy as the region typically has typical void periods.
Two regions, however, experienced an increase in void periods in the lettings market this June:
- East Midlands – 15% uptick in void periods.
- Greater London – 16% uptick in void periods.
Looking forward
A Goodlord spokesperson commented on these statistics and mentioned that the rental prices will most likely peak around the start of the academic year and mentioned that:
“…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.”
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Source: Goodlord
