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Average Rent Is Up 6% in UK Property Market

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    Rent Prices Remain High in UK Property Market

    Goodlord’s recent market analysis reveals that rental property prices stayed steady in March, and voids remained unchanged, indicating sustained tenant demand.

    While 2024 has seen a flurry of buyer activity and supply increases in the buy-to-let sector, investors may be happy to see tenant demand remain high. During 2023, more people chose to rent properties due to increased inflation and mortgage rates. Increased tenant demand then led to higher rental prices.

    Let’s look at the Goodlord Rental Index in more detail and see if we can learn more about buy-to-let in the UK.

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      How Much Have Rental Costs Increased in the UK Property Market?

      In March, rents increased by 6.4% compared to last year, adding more pressure on tenants in the rental market. However, the true impact of these rises becomes apparent when analysing the Goodlord Rental Index data over the past five years.

      In March 2020, during the lockdown, tenants paid £909 per property. The average stands at £1,160 across England, showing a significant 28% rise.

      Rental increases gained momentum in 2022 with a 10% year-on-year rise. Although the pace of increases has slowed, rents are still rising.

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      What Else Does the Rental Index Say About the UK Property Market?

      Following a higher-than-expected rise in February, rents remained nearly stagnant over the past month. The average rent for a property in England in March 2024 stands at £1,160, compared to £1,162 in February—a mere £2 decrease (or -0.2%).

      Modest increases in the average rent per property were observed in the West Midlands and Greater London. However, all other regions experienced a decrease of less than 1.5%.

      Greater London boasts the highest rents at £1,954, while the North East features the lowest at £851.

      There was no change in voids month-on-month, with the average vacant property duration between tenancies holding steady at 18 days.

      This also mirrors the void average recorded in March 2023, indicating no movement in year-on-year averages for void periods.

      CEO of Goodlord, William Reeve, commented on the Goodlord Rental Index: “March was another strong performing month for the rental market, with rents and voids holding steady. However, the truly eye-opening data can be found in the year-on-year figures, which show just how rapidly rents across England have shifted since 2020.

      “In this post-pandemic era, rent rises have consistently outstripped inflation; evidence of the needs of a growing tenant population colliding directly with lack of stock and a complicated combination of pressures facing landlords.”

      If you’d like to learn more about the UK buy-to-let market, dive into some of our area guides:

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      Dale Barham

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      Dale is a property content writer at RWinvest. Keeping a close eye on the UK property market, Dale helps our readers stay informed and up to date on the latest market news and statistics.