In January, the rental costs in Greater London rose by 1.8%, reaching an average of £1,968 in the capital, according to the Goodlord rental index. Meanwhile, prices increased by 1.5% month-on-month in the North West, making it the top region outside of London for rising rental costs.
Goodlord’s CEO, William Reeve, noted that January typically sees a slower market, with new tenancies taking a few weeks to gain momentum after the holiday season. The unexpected rise in month-on-month rents and consistently substantial year-on-year increases suggest that the market remains robust.
Reeve also pointed out the potential for exciting developments in the coming months, anticipating effects on the lettings side due to increased activity in the housing sales market.
Analysing the year-on-year data for January 2024 compared to January 2023, the North West experienced the most significant rent increase, rising by 9%. On the other hand, the East Midlands saw the slightest difference, but rents still increased by 5.5% year-on-year.
Void periods – the average time a property stays vacant between tenancies – extended from 20 days in December to 22 days in January. Despite this month-to-month increase, voids have decreased compared to the previous year, when January 2023 recorded an average of 23 days across England.
The East Midlands currently has the longest void periods at 28 days, while Greater London has the shortest at 18 days.
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