Goodlord’s June 2023 Rental Index shows a sixth consecutive rise in rents in England while voids dropped steeply.
June saw the cost of rent across England rise for the sixth consecutive month, according to Goodlord’s latest Rental Index. During June, voids also dropped steeply, highlighting rising demand as we enter the busiest season for the lettings calendar.
Rents rise in all but one region
The cost of rent rose in seven of the eight regions monitored by Goodlord during June. The average cost of rent per property in England is now £1,148. This is up from £1,111 in May - a 3.3% increase.
The biggest rise in prices was recorded in the South West, where rents rose by a huge 9% during June - rising from £1,092 to £1,191.
Only one region recorded a decline in the cost of rent. The East Midlands saw costs drop by 1.08%.
The highest prices are found in Greater London, where the average cost of a rental property is now £1,965 per month.
Rental costs have risen for six consecutive months, with prices now at their highest level recorded since September 2022. The highest average rents last year were recorded in September, when costs hit a peak of £1,249.
Voids take the plunge in hot June
During another month of rental cost rises, another key indicator that the market is heating up for summer can be seen in the void figures.
During June, void periods in England fell by an average of three days - dropping from 19 to 16 days on average - a reduction of 15%.
The biggest change was recorded in the South West, traditionally a region that sits in the middle of the pack when it comes to void averages. But a surge of demand in the area saw voids drop from 20 days to just 11 - a huge 45% shift. This means the South West had the lowest void periods in England during June.
Three further regions saw double-digit declines in voids - the North East (-16%), North West (-15%) and the West Midlands (-21%).
However, two regions saw an uptick in voids during june. Numbers were up by 15% in the East Midlands (rising from 20 days to 23) and by 16% in Greater London (up from 12 to 14 days).
Oli Sherlock, Director of Insurance at Goodlord, comments:
“We’ve now seen six consecutive months of price rises and we predict this to continue throughout the summer. The fairly sizable drop in void periods during June also reflects this intensification of demand, as tenants snap up properties as soon as they come on the market.
We’ll likely see prices and demand peaking as we hit the start of the academic year and, 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, affecting all industry stakeholders.”
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