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Rents are rising as letting agents told to prepare for ‘a busy few months’ – Property Industry Eye

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Rents continued to rise across most parts of the country in August, although there were signs that void periods are starting to increase slightly.

The latest data from Goodlord indicates that the market is strong heading into autumn, but the picture for void periods remained mixed in August, with only three monitored regions continuing the downward trend in average void periods seen in recent months. a

However, all regions are still recording void periods below their annual average and the overall average void period in England remains low at 15 days.

The North West saw the biggest month-on-month decrease in August, with its average void period dropping from 20 days in July to 18 days in August – a decrease of 10%. London and the East Midlands also saw their average void period reduce by one day in August.

The average void period climbed by 66% in the South West in August, from 9 days in July to 15 days in August. Smaller increases were also recorded in the North East and South East.

There was no change in the West Midlands, with the average void period remaining steady at 18 days.

The data also shows that rents continued to increase in England in August, bringing the average rent across the country to £1,097.41 –  an increase of 3.5% on last month’s already record-breaking figure for the Goodlord Rental index of £1,060.50.

In the South East, the average monthly rent hit £1,293 in August, up 14% from £1,137.29 in July.

Other areas to see significant shifts were the East Midlands, where the average monthly rent is now £946.89 – a month-on-month increase of 7% – and London, where the average monthly rent increased by 6% from £1,631.10 in July to £1,725.77 in August. Small increases were also seen in the West Midlands and the South West.

The North East and North West were the only regions to register decreases in average monthly rents. In the North East, the average monthly rent dropped by 7% to £809.79 in August, while in the North West, the average monthly rent decreased by 5% to £807.17 – the lowest in the country.

The average tenant income decreased by 6% in August, which means the average tenant in England is now earning £25,264. Excluding London, the average tenant income is £23,566.

Tom Mundy, COO of Goodlord, said: “The picture for the lettings market remains mostly positive heading into Autumn. August has capped off a hugely busy summer for the industry.

“Lack of stock could be contributing to rising rents in much of the country, but, with average void periods remaining low, the indications are that demand remains strong heading into September and letting agents can expect a busy few months as we head into the final quarter of the year.”

Void figures

June 2021

July 2021

August 2021

Regional average

YoY

Month on Month % change

East Midlands

18

18

17

22

6.25%

-5.6%

Greater London

17

14

13

20

-35.00%

-7.1%

North East

13

7

8

19

-38.46%

14.3%

North West

21

20

18

24

-5.26%

-10.0%

South East

15

13

14

17

7.69%

7.7%

South West

8

9

15

17

-37.50%

66.7%

West Midlands

23

18

18

21

-25.00%

0.0%

England average

16

14

15

20

-16.67%

7.1%

Cost of rent figures

June 2021

July 2021

August 2021

12 Month Regional Average

2021 Regional Average

Month on month % change Previous Month

East Midlands

£824.86

£881.54

£946.89

£848

£845

7.41%

Greater London

£1,566.47

£1,631.10

£1,725.77

£1,570

£1,567

5.80%

North East

£732.22

£872.66

£809.79

£680

£694

-7.20%

North West

£764.44

£852.85

£807.17

£748

£756

-5.36%

South East

£1,062.33

£1,137.29

£1,293.95

£1,078

£1,085

13.77%

South West

£1,002.02

£1,248.20

£1,274.10

£987

£1,000

2.07%

West Midlands

£772.02

£799.86

£824.18

£772

£777

3.04%

England

£960.62

£1,060.50

£1,097.41

£955

£960

3.48%

 

https://propertyindustryeye.com/rents-are-rising-as-letting-agents-told-to-prepare-for-a-busy-few-months/