According to the latest Rental Index from Goodlord, rental prices in England continued to climb in June, marking the sixth consecutive month of increases. Additionally, there was a significant decrease in vacant properties, indicating a surge in demand as we approach the busiest period in the lettings calendar.
Goodlord’s data revealed that rental prices increased in seven out of the eight regions analyzed in June. The average rental cost per property in England now stands at £1,148, a notable rise from £1,111 in May, representing a 3.3% increase.
The South West experienced the most substantial price hike, with rents surging by an impressive 9% in June, going up from £1,092 to £1,191.
However, the East Midlands was the only region that observed a decline in rental costs, with a decrease of 1.08%. The highest rental prices are still observed in Greater London, where the average monthly cost of a rental property now stands at £1,965.
Voids take the plunge in hot June
Rental prices have experienced a continuous increase over the past six months, reaching their highest level since September 2022. Notably, September of the previous year marked a peak in average rents, with costs reaching £1,249.
In June, amidst another month of rising rental prices, a significant indicator of the market heating up for the summer season is reflected voids take the plunge in hot June.
During June, void periods in England saw an average reduction of three days, dropping from 19 to 16 days on average, representing a 15% decrease.
The most substantial change occurred in the South West, typically a region that falls within the average range for void periods. However, a surge in demand led to a remarkable 45% decline in void periods, from 20 days to just 11. Consequently, the South West recorded the lowest void periods in England during June.
Furthermore, three other regions witnessed double-digit declines in voids: the North East (-16%), North West (-15%), and the West Midlands (-21%).
The South West experienced the most significant change in void periods, surpassing its usual average. Demand surged in the region, resulting in a substantial 45% drop in voids from 20 days to just 11. Consequently, the South West boasted the shortest void periods in England throughout June.
Three additional regions also witnessed notable double-digit declines in voids: the North East (-16%), North West (-15%), and the West Midlands (-21%).
However, two regions saw an increase in void periods during June. The East Midlands observed a 15% rise, with voids extending from 20 days to 23, while Greater London experienced a 16% uptick, with voids increasing from 12 to 14 days.
Oli Sherlock, Director of Insurance at Goodlord, commented, “We have now seen six consecutive months of price increases, and we anticipate this trend to persist throughout the summer. The significant decrease in void periods during June further reflects the heightened demand, as tenants swiftly secure available properties.
“As we approach the start of the academic year, we can expect prices and demand to reach their peak. Although the market typically cools down in autumn and winter, ongoing supply issues may continue to exert pressure on rental stock, affecting all stakeholders in the industry.”
