Renters in Greater London are facing a new challenge as the cost of renting has climbed by 1.8% just in January. This increase has pushed the average rent in the capital to a whopping £1,968.
It’s not just Londoners who are feeling the heat. Renters in the North West have seen a 1.5% increase in rental prices month-on-month, according to the latest data from the rental index provided by Goodlord.
William Reeve, the chief executive at Goodlord, shared his observations, “We don’t expect to see huge market movements in January; the pace of new tenancies tends to take a few weeks to pick up post-Christmas. So to see this uptick in month-on-month rents – as well as the consistently sizeable year-on-year rises – is a sign that the market isn’t cooling down anytime soon. In addition, with a new burst of activity on the sales side of the housing market, we could start to see some interesting knock-off effects on the lettings side in the coming months which could bring additional turbulence.”
A Look at Year-on-Year Regional Changes
When comparing the data from January 2024 to that of January 2023, the North West stands out with the highest increase in rents, showing a 9% rise from the previous year. This is a substantial leap, indicating a tight and competitive market in the region.
Conversely, the East Midlands observed the smallest increase, though rents still rose by 5.5% year-on-year. This indicates that while the increase is less dramatic than in other regions, the trend of rising rents is a nationwide issue.
Void Periods – A Mixed Picture
Void periods, which refers to the average time a property remains empty between tenancies, have seen some interesting trends. In January, these periods lengthened slightly, moving from an average of 20 days in December to 22 days. However, looking at the bigger picture, there’s a positive note: year-on-year, void lengths are actually down from an average of 23 days in January 2023.
Regionally, the longest void periods are currently in the East Midlands, averaging 28 days, while Greater London enjoys the shortest periods, averaging 18 days. This reflects the high demand for rental properties in the capital, despite the rising costs.