Rents hold steady in February as tenants look beyond the pandemic

Posted on Wednesday, March 10, 2021

February was another strong month for the lettings market, with rents holding steady and voids falling, providing much-welcomed optimism for agents and landlords.

The latest data from Goodlord revealed that tenants are starting to look beyond the pandemic, resulting in a strong February for the lettings market. Rents held firm in England dropping by just £3 to £872, from £875 in January.

The South East, South West and West Midlands all saw the average cost of rent increase slightly. The East Midlands, Greater London, North East, and North West all saw slight decreases of between 1-2%.

Voids decrease

Void periods decreased in all but one region across England during February, as the market picked up pace as it headed into Spring. The West Midlands saw the biggest shift, with voids dropping from 26 days in January to just 14 days in February. The region hasn’t seen voids at this level since March 2020.

Elsewhere, the North East saw voids decrease by 9 days on average. And Greater London saw a drop from 25 days to 20 days. The only region to see voids increase was the North West, where rates ticked up from 23 days to 28 days on average. Across England as a whole, the average void period is now 21 days, down from January’s 24 days.

Tenant incomes

The average income of a tenant in England dipped in February. The figure declined by 3.6% from £24,875 to £23,983. The average across the last 12 months is £24,344 - roughly in the middle of the January and February figures.

Tom Mundy, COO of Goodlord, comments: “It’s been another strong month for the lettings sector and the drop in void averages is a strong indicator for more positive months to come. Despite much attention being trained on the sales market, the underlying strength of the lettings market over the past year should not be overlooked. With the roadmap now in place and the weather improving, steady rents and declining voids show consistent demand across the majority of England which will only grow as we head into summer.”

 

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