Voids reach the highest level in two years

Voids reach the highest level in two years

0:01 AM, 2nd February 2023, About A year ago

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Rent prices increased in January but voids have reached their highest level since 2021, data from Goodlord reveals.

The firm also highlights that tenant salaries are rising more quickly than rents are.

It says that January offered a mixed picture for landlords as the average cost of rent in England rose by 8% to £1,076.

However, rents are lower than the record highs recorded in Autumn 2022 when average rents hit an all-time high of £1,249.

Though most prices remained steady, the biggest shifts in prices were seen in the East Midlands, where prices increased from £894 to £924, and the North East, where rents fell from £800 to £778.

‘Interesting month for the market’

Goodlord’s Tom Mundy said: “This was certainly an interesting month for the market.

“There’s clearly a huge amount of demand for available properties and costs are remaining consistently high, but we do seem to have firmly come down from the price peaks seen last Autumn.

“At the same time, this was definitely a slower paced month than we’ve become accustomed to. January isn’t traditionally the busiest month for lettings, and the void numbers reflect this.”

Voids increase

Goodlord also says that January saw void periods increase sharply across England as the number of void days per property rose 15% from 20 to 23.

This follows six-months of gradually increasing voids and is the highest figure recorded by the Index since April 2021.

The average void in the East Midlands, Greater London, the North West, and the South East all significantly increased over January.

The North West jumped from 20 to 27 days on average, with Greater London’s numbers jumping from 13 days to 17.

Tenants’ salaries reach record highs

The data also highlights that tenant salaries hit a record high in January – they are now 12% higher year on year — and well ahead of the average rent increases.

The average take home pay for renters in England reached £32,195, up 6% compared to December’s £30,346.

The biggest shift over the last month came in the North East, where average salaries rose by 11% in one month – from £25,906 to £28,890.

Mr Mundy said: “The tenant salary numbers are also noteworthy, hitting a new high this month, with year on year increases to pay continuing to outstrip the average rise in rental prices.”


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