The most recent market analysis from Goodlord reveals a noteworthy trend in the rental landscape. According to their findings, the average rents for new tenancies confirmed in November have observed a substantial year-on-year increase, registering at 7.3%. To put this into perspective, the average price per property in November 2022 stood at £1,087, contrasting sharply with the current figure of £1,166.
Delving into regional specifics, the North West emerges as the frontrunner in the year-on-year change for confirmed November rents, boasting an impressive 11% surge compared to the same period last year. Notably, the East Midlands, North East, South East, South West, and West Midlands have all witnessed notable rises, each exceeding 7%.
Despite the conventional seasonal slowdown in the letting sector during this period, sustained market demand has resulted in rents maintaining a relative steadiness in November compared to October figures. While there is a marginal decrease of less than 2% in average rents for new tenancies, bringing it to £1,166 across England, this aligns with the historical trend of a slight dip between October and November, observed consistently over the past five years (2019-2023).
The East Midlands, South East, and West Midlands experienced minimal movement in prices during November, with variations of less than 1%. In contrast, Greater London, a region accustomed to a reduction in rents between October and November since 2019, witnessed a notable 4% drop in average rent for new tenancy agreements last month. This downturn follows a period of heightened price escalation in the capital, bringing average prices for new tenancies back to levels last seen in June and July.
In terms of void periods, the average duration increased from 18 days to 20 days in November, marking an 11% rise. Interestingly, the Southeast was the sole region to record shorter void periods over the last month, with averages dropping from 18 days to 17. Conversely, Greater London and the South West experienced significant changes, with void periods increasing from 12 days to 16 and 16 days to 26, respectively.
Shifting focus to tenant demographics, there has been a marginal uptick in both average salary and age. The average salary of a renter confirming a new tenancy in November saw a modest 2% increase from October, settling at £36,871. Concurrently, the average age of tenants taking out tenancies in November rose slightly to 34, surpassing the year-to-date average of 33 years.
William Reeve, CEO of Goodlord, offers insights on the data, stating, “Whilst month-on-month patterns continue to follow the predicted seasonal ebbs and flows, the year-on-year data highlights how much the market has changed over the last 12 months. Rents are up by over 7% compared to November 2022, reflecting the intensity of demand the market has experienced since then.
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