Voids plummet as rents rise according to latest market snapshot

There’s been a big rise in rents and a large drop in voids in the past month according to PropTech supplier Goodlord.

They are now at their highest levels since August 2021. 

The average cost of rent across the UK rose by four per increasing from £968 to £1,006 per property - a rise was recorded in every region monitored. 

The biggest regional shift was seen in the North West, where average rents rose by six per cent over the last month from £770 to £819. 

A rise of five was seen in the West Midlands and in Greater London and prices rose by 4.5 per cent in the South West. 

However, in good news for tenants, the average salary for renters across England also rose during March. 

Salary averages were up by 2.7 per cent in England - increasing from £28,781 per tenant, to £29,549.

As rents rose, voids came down. 

During March, average void levels across England hit their lowest levels since August 2021. The average void period for a property in England dropped by 18 days to 16 days on average - a reduction of 11 per cent.

The biggest change in voids was seen in the West Midlands, which has consistently recorded higher-than-average void periods for several months. In March, however, voids dropped from 22 days to just 16 days - a big swing downwards of 27 per cent.

Greater London, the North West and the South West all recorded significant reductions in voids of between 10 and 15 per cent.

The only region to see an increase was the East Midlands, where voids crept up from 18 days on average to 19 days - a five per cent uplift. The East Midlands also recorded the smallest increase in the cost of rent amongst the regions monitored, indicating weaker demand for rental properties in the region. 

Tom Mundy, COO at Goodlord, comments: “March was a really big month for the market. We’re now back to the rental costs and void periods seen last summer, when the sector was last breaking records. 

“Over the last month, rents have jumped up quite significantly and voids are much lower than they have been all winter. 

“This is all indicative of high demand and low supply. It’s a reminder of the need to keep as many landlords in the sector as possible, to ensure demand can be met. 

“These numbers also point to the fact that rising rents will add an additional burden to renters as the cost of living crisis continues to affect all aspects of the economy, despite the accompanying rise in average salary per tenant.”