UK lettings market soars as rents strengthen across the board

With the vast majority of the attention on the sales market due to the stamp duty deadline this week, the latest data released by Goodlord reveals that the lettings market recorded a strong month, with voids continuing to decrease and rents rising across England.

Property Reporter
2nd July 2021
To Let 690

According to the figures, voids dropped in nearly all regions monitored by the firm during June, with the East Midlands, Greater London, the North East, North West, South East and South West all reporting a fall.

For the South West and North East, the month on month decrease in voids was a huge 50%. The South West moved from 18 days to just 8, and the North East dropped from 30 days (May’s highest rate) to 13 days.

All other areas enjoyed a healthy drop of at least 20% to their void periods - highlighting the exceptionally high levels of tenant demand being seen across the lettings market. The only area to see an increase in void periods was the West Midlands, where voids increased from 18 days to 23 days after the region experienced a particularly busy May.

The average void period in England is now 16 days, down from 22 days - a decrease of 30%.

More good news for landlords

Goodlord also reported that rents also increased in every region during June, with the North East and the South West both recording increases of over 10% (11% and 10% respectively) and all other English regions seeing a boost.

The West Midlands, the only area not to see a decrease in voids, recorded a very marginal rise in rents of 0.05%.

The average cost of rent for a property in England is now £932, an 8% increase on May’s figure of £885. Tenants in England now earn an average of £25,647 - up slightly on May’s average of £25,429.

Tom Mundy, COO at Goodlord, comments: “All the signs this year have been pointing to a bumper summer for lettings and we’re now seeing that reflected in the numbers. Trade is brisk across the country and tenant demand is extremely strong. As summer continues and the prospect of remaining restrictions lifted, increasing numbers of people are looking to move.

“Rents are at levels we’d expect to see during the summer. In fact, average rents were higher last month than June 2019, pre-pandemic, showing that the lettings market has continued to go from strength to strength despite the turbulence of the last 16 months.

“This demand may test the capacity of agents as they move from an unprecedented period of activity for the sales market straight into this spike in rental demand.”

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