Rents spike and voids plunge in June as market heats up

June noticed the price of hire throughout England rise for the sixth consecutive month, in line with Goodlord’s newest Rental Index. Throughout June, voids additionally dropped steeply, highlighting rising demand as we enter the busiest season for the lettings calendar.

Rents rise in all however one area

The price of hire rose in seven of the eight areas monitored by Goodlord throughout June. The common value of hire per property in England is now £1,148. That is up from £1,111 in Might – a 3.3% enhance.

The most important rise in costs was recorded within the South West, the place rents rose by an enormous 9% throughout June – rising from £1,092 to £1,191.

Just one area recorded a decline in the price of hire. The East Midlands noticed prices drop by 1.08%.

The very best costs are present in Larger London, the place the common value of a rental property is now £1,965 per 30 days.

Rental prices have risen for six consecutive months, with costs now at their highest degree recorded since September 2022. The very best common rents final yr had been recorded in September, when prices hit a peak of £1,249.

Voids make the leap in scorching June

Throughout one other month of rental value rises, one other key indicator that the market is heating up for summer season might be seen within the void figures.

Throughout June, void durations in England fell by a median of three days – dropping from 19 to 16 days on common – a discount of 15%.

The most important change was recorded within the South West, historically a area that sits in the midst of the pack in the case of void averages. However a surge of demand within the space noticed voids drop from 20 days to only 11 – an enormous 45% shift. This implies the South West had the bottom void durations in England throughout June.

Three additional areas noticed double-digit declines in voids – the North East (-16%), North West (-15%) and the West Midlands (-21%).

Nevertheless, two areas noticed an uptick in voids throughout june. Numbers had been up by 15% within the East Midlands (rising from 20 days to 23) and by 16%  in Larger London (up from 12 to 14 days).

Oli Sherlock, Director of Insurance coverage at Goodlord, stated, “We’ve now seen six consecutive months of worth rises and we predict this to proceed all through the summer season. The pretty sizable drop in void durations throughout June additionally displays this intensification of demand, as tenants snap up properties as quickly as they arrive available on the market.

“We’ll probably see costs and demand peaking as we hit the beginning of the educational yr and, while issues usually start to chill down over the autumn and winter, if provide points proceed we might see this stress on rental inventory proceed, affecting all trade stakeholders.”