In February, the Goodlord Rental Index showed a continued climb in rental prices and a decrease in the time properties remain unoccupied.
The average rent for properties in February 2024 is holding at a 7% increase over the same period in 2023.
Average rents experienced a 1% boost in February, which resulted in the average property rent in England reaching £1,162 per month, a rise from January’s £1,154.
Typically, rents dip after Christmas, and in four of the past six years, there has been a decrease in February. However, rents have been consistently rising past this seasonal downturn.
Year-over-year comparisons show the South West with a significant 11% rent increase for February 2024, while the North East saw a 7.5% hike. The smallest increase was in the West Midlands, where rents went up by 4.5%.
The South West and South East both experienced the biggest monthly rent increases at 2.5%, with average rents at £1,293 in the South East and £1,173 in the South West.
While the overall rise in England was 1%, the West Midlands and Greater London saw declines, with 2% and 1% reductions in rent, respectively.
The average void period, the time a rental property stays empty, fell from 22 days to 18 days across England, a notable 18% reduction in February.
The North East saw the largest decrease in voids, dropping from 24 to 17 days, a 29% change. All regions except the South West, which remained at 20 days, saw shorter voids.
William Reeve, Goodlord’s CEO, observed that rental price increases in February are unusual since it’s typically a slower month. The current rise reflects the tight market conditions and scarce housing availability, shown by the decreasing void periods.
He notes that rent increases are maintaining a 7% year-on-year trend and it remains to be seen if this figure will fall as summer approaches, after last year’s highs, or if it will reach new heights.
