- Thu 08 Apr 2021
The rental market remains buoyant according to the latest rental index from Goodlord. Lettings data for March shows that tenant incomes rose across England, with rents increasing alongside and the average void period also stayed steady month-on-month.
Rents across most of the UK look set to increase as rising demand from prospective tenants puts upward pressure on values, according to the February 2020 RICS UK Residential Market Survey. Demand for property has increased in recent months, but the number of homes coming on to the private rented market has remained at a record low.
Surveyors have reported a shortage of properties to let which is driving up rental prices, with the number of properties listed by landlords for rent falling again last month - extending the decline since the trend was first recorded in 2016. Rising demand for homes to rent and falling supply will see rents increase by potentially 2% - 3% per annum by 2025 if this trend is maintained, according to RICS. Many see this is a conservative prediction due to the increase in demand following the pandemic having forced households to review their personal situation.
The average cost of a rental property in England is now £885 per property, per month, up from £872 in February and the average void period in England remained at 21 days during March, marking no change on the February average.
Each region monitored by Goodlord saw an increase in the average cost of rent during March, the first time we have seen such a uniform increase across England since July 2020. The recent roadmap to ease the lockdown restrictions seems to have injected confidence back into the rental market and for now at least, feedback around expectations are consistent with activity levels continuing to strengthen albeit relatively modestly.
Jayne Cardew, Bradleys Group Rentals Manager, commented: “As we start the process of lockdown easing, the rental market is particularly busy. It’s really encouraging to see tenant salaries start to increase and for average rents to be holding firm, along with void periods. Although there are still uncertainties on the road ahead, but the underlying strength of the rental market is clear from the latest figures and we expect to see a strong summer of activity. We still require more properties to meet the demand from tenants even though we have seen an increase in Landlords getting confused by the increase in legislation and are now employing us to ensure they remain compliant.
If you are considering letting out your property or are looking to change your managing agency, contact us to find out about our range of packages as well as our updated Rent Guarantee and Legal Expenses policy. For most landlords the biggest fear or worry is usually not receiving all or part of the rent due from the tenants and we have a number of ways to address this fear and reduce the chances of you experiencing this problem.”