As 2021 ends, Goodlord has analysed market data from across 2021. The statistics show a market in strong health, despite the impact of the January lockdown and shifting rules around evictions.
Voids end the year 25% down
Demand for rental properties grew throughout the year, peaking in July and August, traditionally some of the sector’s busiest months.
In January 2021, average voids across England sat at 24 days. This dropped to 14 days in July, before steadying out at 18 days in November. This means voids end the year 25% lower than at the start of 2021.
The North East has seen the most fluctuation throughout the year, soaring to 30 days in May before plunging to just 7 days in July.
Rents peak in summer, end year up 8%
Rents across England followed a similar trend. The average cost of renting a property gradually inched up during the spring, before peaking during the summer months. Costs end the year 8% higher than figures recorded in January.
August and September saw the highest costs, with both months posting rental averages of over £1,000 per month, per property.
The highest cost of rent recorded during the year came, unsurprisingly, in Greater London - clocking in at £1,725.77 in August. The lowest was seen in the North East, where average prices were £610.06 during February.
Tenant incomes strengthen during 2021
After a slow start to the year, tenant incomes also rose during 2021. The average wage of a tenant in England between January and March 2021 was £24,558. Between September and November, this average rose to £26,486 - an uplift of 7.8%.
Greater London held the highest average wages across the year, with a 2021 average of £36,180. The lowest incomes were in the North West, where tenants earned £21,001 on average this year.
Tom Mundy, COO of Goodlord, comments:
“It’s been another intense year for the sector. Agents and landlords have proved remarkably resilient despite the shifting tides, as has the overall health of the market. It’s great to see the year ending in such a strong place, particularly as we head into what seems likely to be another phase of uncertainty. Demand for rental properties remains strong throughout the country and the market can look towards the New Year with optimism.”