Rental market remains steady with high demand

Rental market remains steady with high demand

9:55 AM, 5th January 2023, About A year ago

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The lack of homes to rent and strong tenant demand has helped the rental market remain steady in December – though rent prices fell slightly, Goodlord reveals.

December is usually the quietest month in the year and voids have remained unchanged.

In six of the seven regions monitored by Goodlord, there was a small decrease in the average cost of rent during December. On average, the price fell from £1,087 in November to £1,071 in December, a reduction of 1.47%.

Landlords saw a small reduction as prices fell

The biggest drop was seen in the South West where landlords saw a 2.68% reduction as prices fell from £1,095 to £1,066.

The smallest changes were recorded in the North West and the West Midlands, where rents moved by less than 1% respectively.

The only region to see an increase in the average rent price was the North East, which saw a 1.36% rise – with prices moving up from £789 to £800.

‘Pace of lettings held steady in December overall’

Tom Mundy, the chief operating officer at Goodlord, said: “The pace of lettings held steady in December overall, despite festive breaks and snow-induced slowdowns.

“This is testament to the strength of the market and ongoing demand from tenants.”

He added: “We always expect to see a dip in activity and a drop in rental averages during November and December, so the steadiness of voids and the very marginal shift in rental costs this month mean we’re likely to see a very brisk pace across the lettings market in the early months of 2023.”

Average rental costs are now at their lowest

Goodlord says that average rental costs are now at their lowest since June 2022 with prices up by 8.7% across England, compared to 2021.

The highest rents last year were in Greater London (£1,796) and the lowest in the North East (£810), the same regional split as recorded in 2021.

The cost of rent peaked in August when prices reached £1,227 across England on average – the highest ever rate recorded by the Index.

The average void period for a rental in England remained at 20 days during December, with no month-on-month change in comparison to November.

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