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Rents surge by 10% in month to July: Goodlord

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Average rents in England increased by more than 10% in the month to July, the latest index from Goodlord has revealed.

Rents rose by £100 a month from £960.62 in June to reach £1,060.50 in July, which is the highest level recorded for two years.

July’s figure was also 4% higher than a year ago, when rents averaged £1,016.87.

The South West saw prices rise by 24% over the month – taking average costs to £1,248 as demand for coastal living continued.

The North East saw a 19% uplift in average rent from £732 to £872. Despite this, the North East remains the cheapest place to rent in the UK in relation to average regional salaries.

All other regions recorded a rise: the North West (11.5%), the South East (7%), the East Midlands (6.8%) Greater London (4%), and the West Midlands (3.5%).

Voids are at their lowest level since August 2019, and tenant salaries are at their highest since the index began in 2014.

July saw average void periods drop across almost every region in England, with significant shifts recorded in some areas.

The biggest change was seen in the North East, where voids dropped from 13 days in June to just 7 days in July – a reduction of 46%.

The West Midlands region saw a 20% drop in average voids from 23 days in June to 18 days in July.

Greater London, the North West, and the South East also saw falls.

The East Midlands recorded no change at 18 days.

The South West was the only region to record an increase – from 8 days in June to 9 days in July.

However, this is still significantly down on May’s average for the region of 18 days.

The overall average for void periods in England in July stood at 14 days, which is the lowest figure since August 2019.

Tenant incomes increased a record 5% month on month in July to an average of £26,946 a year.

Excluding London, the average is £25,647 per year, which is the highest country-wide average ever recorded by the Rental Index.

Goodlord chief operating officer Tom Mundy says: “We’ve seen some incredible numbers come out of the sector over recent months, but July has set a new benchmark for industry strength.

“It’s clearly been an incredibly busy few weeks for the market, with the data pointing to void and rental cost averages not seen for almost two years. “Likewise, tenants are earning higher salaries, which is contributing to this ongoing demand for rental space.

“August is typically a hugely busy month for the sector.

“This means landlords and agents should be prepared to capitalise on demand and ensure that they have the systems in place to handle this next phase of the lettings boom.”

Original Article

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