Lettings market ends 2023 with major year-on-year increase in rents
Rents are up 9% in 2023 from 2022. Keep your landlords informed of the latest trends in rent prices by downloading our free email templates.
The latest Rental Index from Goodlord showcases year in review trends for the rental market. In this bumper update, Goodlord reveals rent price and void duration trends for 2023, with average rents nearly 9% higher across 2023 as a whole compared to the average rents recorded in 2022.
Despite month-on-month rents dropping slightly from November 2023 to December 2023, year-on-year figures show rents hugely increased throughout the course of 2023, with several records broken during the summer.
Alongside these rises, void periods (the time in which a rented property remains unoccupied between tenancies) also hit historic lows during 2023.
- Rent rises set multiple new records in 2023
- December 2023's month-on-month dip fails to dull year-on-year rises
- Voids hold fast to regional trends
- Oli Sherlock, Managing Director of Insurance, says
- Download a free email template summary of December 2023 to send to your landlords
2023 in review - rent rises set multiple new records
Across 2023 as a whole, average rents across England rose by almost 9% when compared to 2022 averages. In 2022, rents averaged £1,086 per property. In 2023, annual averages were £1,182 - an uplift of 8.8% year-on-year.
The highest rents of 2023 were recorded between July and August. These record-breaking months saw average rental property costs rise over £1,300 for the first time as tenants scrambled to secure properties amidst a supply crunch.
December 2023's month-on-month dip fails to dull year-on-year rises
According to the latest Index figures, December 2023 rents were up 7% year-on-year - hitting an average of £1,147 last month compared to the December 2022 figure of £1,071.
December - traditionally one of the quietest months for lettings - saw a small decrease in month-on-month rents, when compared to November figures. Average rents across the UK dipped by 1.7% across England overall during December - a trend typically driven by lower market activity over Christmas.
Void periods hold fast to regional trends
Voids held steady year-on-year, with the average void period in December 2023 coming in at 20 days - matching December 2022’s average exactly.
However, across the course of 2023, a new average void record was set. England's overall void average shortened to just 9 days in July 2023.
Oli Sherlock, Managing Director of Insurance at Goodlord, says:
“It’s been a rollercoaster year for the market, with rents ending the year significantly up compared to 2022 figures.
We’ve seen first-hand the unprecedented levels of demand for rental properties, as a growing tenant population has come face-to-face with the entrenched supply and demand issues facing our housing market.
The lettings industry has striven to keep pace with this demand, as evidenced by some of the historically low void periods we’ve seen throughout 2023. Many agents will have been catching their breath over December, but it’s looking like 2024 will be another year of high rents, escalating demand, and ongoing regulatory changes which will keep the whole market on its toes.”
Free landlord newsletter templates
You can send the latest Goodlord Rental Index data straight to your landlords using Goodlord's free email newsletter template. The template includes the average monthly rent, void periods, and age and income of tenants in England, as well as the latest legislation news. The free email templates are available now.
Goodlord customers can customise their templates using their agency's own data through their Agent Hub.