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Rents Hit 7-Month High According to Property Market Index

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    Rents Up 6% Year-on-Year

    The latest Goodlord Rental Index reveals that rental costs in England have hit the highest levels since October in the last month. Rents across the country have seen an average increase of over 1% between April and May, making them now 6% higher annually.

    Goodlord’s data is sourced from tenancies processed through their own platform, giving them information on average rents, void periods, and other insights on the current rental market.

    Learn More: Find out more about the buy-to-let properties UK market and how to avoid stamp duty on buy-to-let with our guides and insights.

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      Rental Market Entering Busy Summer Season

      Rental growth typically undergoes a seasonal summer upswing, as it is usually the busiest period for the market and when rental inflation reaches its peak. The increase recorded in May could suggest that the market is starting to enter into this busy season according to Goodlord.

      May’s figure represents a seven-month high as the average cost of a rental property in England now sits at £1183 per month. This is 1.4% up on April when the average was £1166. It’s the most expensive average rent since October 2023 when the rent of a new tenancy was £1190.

      The biggest month-on-month rise was found in the West Midlands where rent increased by 4%, and the second highest was in the North West where they increased by 2%.

      William Reeve, CEO of Goodlord, commented: “This month’s data may well have signalled the starting gun on summer price escalations. The coming months are traditionally the busiest season for the rental market and the time when rents peak.

      “During 2024 so far, year-on-year rent rises have been fairly consistent – hovering around the +6-7% mark. Rental averages broke the £1,350 per month barrier for the first time in the summer of 2023. That means, if this 6-7% year-on-year trend continues, we could be seeing our first £1,400+ rental average being recorded in just a few months time.”

      Further Reading: What is off-plan property? Find out the answer to this with our guide or get a rental income estimate with our handy calculator or learn more about tax on buy to let properties.

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      Void Periods Lengthen Most in London and East Midlands

      Void periods (how long the property is vacant between tenancies) have lengthened slightly, contrary to predictions. It was found that the average in May was 21 days, an increase of 2 days since April’s figure of 19 days.

      The annual change is an increase of 11% when compared to May 2023 when the average was 19 days, which implies a modest easing of the extreme supply-demand imbalance that has been observed in the past few years according to Goodlord.

      The biggest change in void periods was found in Greater London and the East Midlands where there was a 20% increase in void lengths despite consistently high rental demand.

      Find out more about the UK property market with our buy-to-let area guides covering topics such as available investment property in York and available investment property in Basildon.

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      Author

      Jessica Ferris

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      Jessica Ferris is a property writer at RWinvest, helping our readers stay ahead of property market trends with the latest news and statistics.

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