"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"
The latest Goodlord Rental Index found that average rents have continued to rise steadily this month, with many areas seeing their highest average rents of the year so far.
For the West Midlands and South East this high was, in reality, a fractional month-on-month increase of 0.22% and 0.68% respectively. But some areas, including London, saw more significant jumps.
April marks the biggest jump in average rents for Londoners so far in 2023. Until now, rents in London had increased or decreased by less than 1% month-on-month. This month’s change marks a 2.28% increase, as the average rent in the capital increased by more than £40. Year-on-year, rental prices in London are now 11.4% higher than they were in 2022.
The East Midlands and North East also saw a considerable jump in rent prices, rising by 3.51% and 2.27% respectively in these areas.
The South West is 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.
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.
Voids on the rise
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%.
Voidage days in the South East and North East remained the same at 18 and 17 respectively.
England’s average void 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.
Oli Sherlock, Director of Insurance at Goodlord, comments:
“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."
