It’s a familiar story from PropTech supplier Goodlord as it releases its latest rental market snapshot - a lack of stock and high tenant demand continue to fuel demand for properties across England.
The average cost of rent across England rose during January, with averages hitting £993 per property. This is up from an average of £985 in December and marks the highest rental averages recorded since October 2021.
The North East saw the biggest increase in average prices with a three per cent rise - average costs in the region rose from £716 to £740. This was followed by a two per cent increase in the cost of rent in both the East Midlands and the North West.
Slight decreases of less than one per cent in the average cost of rent were recorded in the South West and the West Midlands.
Average rents in Greater London are now £1,675 - 126 per cent more expensive than in the North East, which has the lowest rents in the country.
Looking at voids, it appears that the pace at which properties are changing hands cooled slightly in January as the market hit a more reasonable pace following a flurry of activity throughout December, with all regions recording a rise in voids.
The average void period in England rose from 18 days in December to 20 days in January.
Voids are, however, continuing to stay low compared to year-on-year figures - with voids in January 2022 down 16 per cent compared to voids in January 2021.
The South West saw the biggest increase in voids last month - jumping up from 18 days up to 26. There was also a big shift in the North West, where averages rose from 17 to 22 days.
More modest rises were seen in Greater London, the North East, and the South East. Each region saw void periods increase by one day on average.
Goodlord chief operating officer Tom Mundy comments: “The pace of the market throughout the winter continues to surpass predictions. Rents are continuing to creep up as tenants compete for the best properties and, as inflation bites, the rising cost of rent is beginning to outstrip salary growth.
“We wouldn’t expect to see record-breaking low voids during January, particularly in light of the huge market activity seen in December, so the small increase in void averages we’re seeing this month isn’t unexpected.
“The overall market picture is still very strong compared to 2021; landlords won’t be struggling to find tenants over the coming months but the rising cost of living may start to affect certain regions sooner rather than later.”
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With all the incoming red tape the lack of stock is only going to increase , so much for rent controls
It’s all hype anyone listening to this Company is worse with their digital everything, bullying me as a traditional LL who housed 3 former Tenants at different stages when looking to be placed in other areas I refuse to deal with them anymore. There is no shortage of housing, voids are caused by movement of Tenants, some are normal movement but these are not normal times. I had 5 properties become vacant in last year & half due to Corona and the knock on from Brexit, never happened before of a sudden, obviously not increasing demand or putting pressure on housing as some left the Uk & not returning.
I dispute the average London rent as false, I disagree with the comparisons between London & North East rents without also comparing the purchase price of property in both areas, where London property prices are 4 times higher than North East, now sing another time.
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