Rents rise for fifth consecutive month as buy to let market remains steady

Posted on Thursday, June 8, 2023

Demand in the buy-to-let market is steady, with rents rising slightly in May and voids remaining flat, according to the latest rental index data.

These figures saw rents rise in six out of the eight English regions monitored by Goodlord. The average rent per property now stands at £1,111, up from £1,103 in April — a 1% increase. This is the fifth monthly consecutive increase, with rental costs now at their highest level since September 2022.

The biggest shift in prices during May was recorded in the South West, where rents were up by nearly 3% — rising from £1,062 to £1,092.

Only two regions recorded a decline in the cost of rent, albeit negligible. The East Midlands saw rent drop by 0.47% and they fell in the North East by 0.19%.

Voids remained steady during May, with the average landlord in England seeing their property standing empty for 19 days. This is the same figure as recorded in April.

The highest voids are now be found in the West Midlands, where the average stands at 23 days. London retains the title for lowest void periods, currently at 12 days.

During May East Midlands, North West and South West all saw void lengths drop by over 9%.

Goodlord director of insurance Oli Sherlock says: “As we head into what are traditionally the busiest months of the lettings calendar, it remains to be seen as to whether we’ll hit the same rental cost highs recorded last summer. But the data is pointing to the ongoing rise in prices continuing and, with voids also holding firm, the market is definitely primed to heat up as we head into June.”

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