Rental Market in England Sees Continuous Growth in May

In May, the rental market in England maintained its upward momentum, with rents increasing in the majority of regions, as reported by Goodlord in its latest market analysis.

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Average Cost of Rental Property Increases to £1,111 Per Month

Out of the eight regions monitored, six experienced a rise in rents during May. The average rental cost per property in England now stands at £1,111, reflecting a 1% increase from the previous month's figure of £1,103.

This marks the fifth consecutive month of rent hikes, and prices have now reached their highest level since September 2022. The most significant surge in rental prices occurred in the South West, where rents increased by almost 3%, climbing from £1,062 to £1,092.

While only two regions observed a decline in rental costs, the decrease was minimal. The East Midlands experienced a decrease of -0.47%, while the North East saw a slight drop of -0.19%.

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Rental Vacancies

The duration of vacancies remained stable throughout May, with the average in England remaining at 19 days, the same as in April.

The West Midlands currently holds the highest vacancy period at 23 days, while London retains the title for the shortest void periods, currently at 12 days.

During May, three regions witnessed a notable reduction in void periods. The East Midlands, North West, and South West all experienced a decrease of over 9% in the length of vacancies.

Oli Sherlock, Director of Insurance at Goodlord, stated, "As we enter what traditionally marks the busiest months in the lettings calendar, it remains to be seen whether we will reach the same rental cost highs seen last summer. However, the data suggests that prices will continue to rise, and with vacancies remaining steady, the market is certainly poised to heat up as we head into June."

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Manchester Rents Increased 22%

According to JLL's 'Big Six' research, which monitors residential development activity, prices, and rents in Manchester, Birmingham, Leeds, Bristol, Edinburgh, and Glasgow, Manchester experienced a significant annual rental increase of 22%, surpassing Birmingham, which had the next highest growth at 18%.

JLL attributed these robust rental price hikes to the conclusion of Help to Buy in October 2022, as well as the rise in mortgage rates following the mini-Budget in September. The research also highlighted the growing importance of energy efficiency in city center rentals, as individuals seek ways to lower their expenses in light of the escalating cost of living. Since the start of 2021, 20% of Energy Performance Certificates (EPC) issued in Manchester received A or B ratings, compared to a mere 12% a decade earlier. Click here to read more.

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