Voids drop across the board as rental prices hold steady - Goodlord Rental Index
Void periods fell in almost all regions monitored by Goodlord in its February 2022 Rental Index, while rents held steady, following a pattern of steadier prices over recent months.
February was another busy month for the lettings sector, according to the latest Rental Index by Goodlord, with voids reducing in almost all regions monitored. Rents, however, held steady over February, even dropping slighting across England. This follows a pattern of steadier prices over recent months, after big increases in the cost of rent during the late summer and autumn of 2021.
Voids drop across England
With good quality housing stock in high demand, voids reduced again during February. Greater London saw a 24% reduction in the length of void periods - dropping from 17 to 13 days. And the East Midlands recorded a 25% drop - from 24 to 18 days.
The biggest change was seen in the South West, where voids reduced by a sizeable 27% during February - moving from 26 to 19 days. The North East, North West and South East also all recorded reductions in average void periods. The only region to see an increase in voids was the West Midlands, where a rise was observed. Numbers shot up from 18 days to 22 days - a 22% increase.
Rents hold steady after months of rising prices
It was a much steadier picture for rents during February. Most regions saw a small drop in the average cost of rent; the England average reduced from £994 per property to £968 - a 2.6% decrease.
The biggest change came in Greater London, despite diminishing void periods. There was a 3% reduction in the average cost of rent in the capital, from £1,675 to £1,609. All other regions saw a 1-3% drop in the average price of rent.
Average salaries rise
A clear trend since the start of 2022 has been a rise in the average salaries of tenants in England. The 2021 salary was average £26,111 per tenant. This has risen sharply over recent months, with average salaries in February hitting £28,115.
Tom Mundy, Goodlord COO, comments:
“We are seeing a clear, consistent picture when it comes to the market - demand is high and stocks are low. This is driving the low void pattern we’re seeing across the majority of the country. We are, however, seeing rents behave in a slightly more stable way which is more in keeping with what we’d expect at this time of the year.
"The shifts in average salaries for tenants is something to keep an eye on - as employers respond to the Great Resignation and staff court higher pay packets, we are seeing take home pay increase. This could well begin to drive up rental prices once again as tenants max out their budgets in order to secure the best properties.”
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