A recent report by Goodlord’s Rental Index shows rent prices across the UK have seen a significant increase, with April figures showing a 5.7% rise compared to the same period last year. This rise in rental costs is affecting various regions differently, with the South West experiencing the sharpest increase.
The average rent for a property in April was £1,166, which marks a noticeable increase from the £1,103 average recorded in April of the previous year. This upward trend in rental prices highlights a consistent growth in housing costs across many parts of the country.
Regional Differences Highlighted
The South West stands out with an 11% increase in rent prices compared to last year, escalating from £1,062 to £1,184 per property. This region saw the highest year-on-year increase. In contrast, the smallest increase was seen in Greater London, where rents rose by just 3%, reflecting a more stable rental market in the capital.
The Stabilisation of the Rental Market
William Reeve, the chief executive of Goodlord, commented on the findings, noting that the rental market shows signs of stabilisation. Despite rents increasing by 6% overall since last year, this rate aligns closely with the current earnings growth rate of 6% as reported by the Office for National Statistics (ONS). Inflation, meanwhile, has dropped to 3%. Reeve suggests that the balance between rent increases and earnings growth indicates a steadying rental market. This idea is further supported by the consistency in void periods—the time a property remains unrented—which have remained similar to last year’s figures at around 19 days.
Exceptions in the Trend
Despite the general upward trend, not all regions are seeing increases. The West Midlands and Greater London have actually seen slight decreases in rent, with reductions of 1% and 0.15%, respectively.
Highs and Lows Across the Country
The disparity in rent prices across the UK is stark. Greater London, despite its modest increase, still has the highest rents, averaging £1,951 per month. On the other end of the scale, the North East offers the most affordable rents at just £863 per month.