According to PropTech, Goodlord, the UK rental market finished last year with an incredible year-on-year increase in rents, with the average rent in England increasing by almost 9% over the previous 12 months.
Average rents were almost 9% higher at the end of 2023 compared to the end of 2022 according to the latest Rental Index released by PropTech, Goodlord, with average rents in 2022 reaching £1,086 per property, while the average rent in 2023 reached £1,182 per property – an uplift of 8.8% year-on-year.
Despite the average rent in the UK dropping slightly between November and December last year, the year-on-year figures released by Goodlord highlight how rents increased dramatically throughout 2023 – not forgetting that throughout the summer, multiple month-on-month records were superseded.
In addition to the multiple new all-time records that were set throughout the summer, void periods in the UK rental market also hit “historic” lows throughout the year, as demand for rental property reached its highest ever recorded level consistently.
The highest rents of the year in 2023 were recorded throughout July, August, and September which is no surprise, as the student market makes up a considerable portion of the Private Rented Sector (PRS) in the UK. Throughout the summer of 2023, students desperately searched for accommodation outside of the Purpose-Built Student Accommodation (PBSA) sector which is infamously ill-equipped to handle the 2.9 million students in the UK that study each year, and subsequently, increased demand for properties across the country.
“It’s been a rollercoaster year for the market, with rents ending the year significantly up compared to 2022 figures. We’ve seen first-hand the unprecedented levels of demand for rental properties, as a growing tenant population has come face-to-face with the entrenched supply and demand issues facing our housing market.” Oli Sherlock, Managing Director of Insurance at Goodlord.
Comparing the average void period for the UK rental market in December 2023 with December 2022, the number of days remained steadfast at 20 days – neither an increase nor a decrease on the previous year. However, throughout the busy summer of 2023, a new average void period record was set at just 9 days in July, matching the levels of demand experienced throughout the market during the year.
“The lettings industry has striven to keep pace with this demand, as evidenced by some of the historically low void periods we’ve seen throughout 2023. Many agents will have been catching their breath over December, but it’s looking like 2024 will be another year of high rents, escalating demand, and ongoing regulatory changes which will keep the whole market on its toes.” Oli Sherlock, Managing Director of Insurance at Goodlord.
At Beech Holdings we have over two decades of experience in renting luxury apartments to both students and professionals within Manchester, and we are also the only developer to have an in-house lettings team that rents our apartments off-plan, prior to completion – meaning you will have a tenant in place from day one.
By letting our apartments off-plan prior to completion, this allows our expert teams to remove void periods altogether, meaning your investment will not sit vacant for three months searching for a tenant in the off-season and providing zero income during this time.