February saw a significant rise in rental costs across England, alongside a marked decrease in the time properties spend empty, flying in the face of the customary post-Christmas slowdown. According to the latest Rental Index from Goodlord, the average rent across England saw a 1% increase from January, bringing the monthly cost to £1,162 per property. This represents a 7% hike from the same time last year, highlighting a sustained upward pressure on rents.

Regional Highlights

• South West Surges: Leading the charge, the South West experienced an 11% year-on-year surge, the most significant increase across the regions.
• Steady Rises: The North East wasn’t far behind, with rents up 7.5% compared to last year.
• More Modest Moves: The West Midlands saw the smallest increase, with rents up by 4.5% from the previous year.

While rents generally trend upwards across England, February’s data brought some regional surprises:

• South East and South West: Both regions enjoyed a 2.5% rent increase, with the South East now averaging £1,293 and the South West at £1,173.
• A Dip in the Midlands and London: Contrary to the overall trend, the West Midlands and Greater London saw their rents decrease by 2% and 1%, respectively.

Voids Shorten, Demand Stays Strong

Another key finding from February’s data is the reduction in void periods, the time a property remains unoccupied between tenancies. Across England, the average void period dropped from 22 days to 18 days, indicating a robust demand for rental properties. The North East, in particular, saw a significant decrease in voids, dropping 29% to just 17 days.

The Market’s Mood

William Reeve, CEO of Goodlord, offered insights into these trends, “We don’t normally see a bump in rents during February. It’s typically a slower month where things cool off following the post-Christmas release of demand we see in January. The fact that we’re seeing a rise this month is indicative of the ongoing squeeze on the market and a lack of available stock – something that’s further evidenced by the shortening of voids across England. Right now, the market is delivering fairly consistent year-on-year stats when it comes to rent rises and we continue to hover around the 7% mark. All eyes will be on whether this starts to reduce as we come into the summer following last year’s record breaking numbers, or if new records will be set.”