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UK Rents Up 6.7% and Void Periods Down as Rental Market Heats Up

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    Rental Market Moves into Peak Summer Season

    According to Goodlord’s latest Rental Index, demand continues to push rental costs ever higher. Alongside this, the average void period also saw a significant reduction in June.

    This boost in demand is typical of the season, as summer is usually the busiest period in the private rental sector.

    The data presented is sourced through the Goodlord platform, using tenancies they process to collect information and key figures regarding average rents, void periods, and other property trends that matter for buy-to-let investment. Let’s take a closer look at the information and what it means for the rental market.

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      Strong Rental Demand Pushes Rents Up 6.7%

      The index states that the average rent for confirmed tenancies on the Goodlord platform in June was £1225, 6.7% higher than last year’s figure of £1149.

      June is generally seen as the beginning of the “high season” for the rental market, as rents typically peak between June and September. One reason for this is that the market is buoyed by student demand during summer. Every year since 2019, the Goodlord Rental Index has recorded a rise in rental prices between June and July, which means another solid increase is expected next month.

      William Reeve, CEO of Goodlord, says: “There is a lot of discussion as to whether the pace of rental price rises is starting to slow. The next three months – which typically bring the annual peak in rents – will settle this debate. Right now, if this year’s current trajectory of consistent 6-7% year-on-year rent rises continues, we’ll see new records broken across England. And whilst a lot of the current signs indicate that this might be on the cards, we would need to see a very sizable jump in rents over the next 4-8 weeks to surpass 2023 averages.

      However, it’s safe to say that market demand clearly remains very strong and that this continues to push rents up month-on-month.”

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      Average Void Period 19% Shorter Month-on-Month

      Good news for rental property investors: not only are rents increasing, but void periods are also becoming shorter. A void period refers to the number of days when a rental property is not tenanted.

      According to Goodlord’s data, the average void was significantly shorter in June, with an average period of 17 days. This is down from 21 days in May, amounting to a 19% reduction compared to the month before.

      However, this is longer than last year’s average. In June 2023, the average void period was 16 days, meaning this year’s figure shows a slight annual increase.

      UK Rents Up 6.7% and Void Periods Down as Rental Market Heats Up

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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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