#25 April data shows rents are up 5.7% in UK property market

The April 2024 Goodlord Rental Index provides an intricate portrayal of the dynamic landscape of rental prices throughout the UK. The index underscores a robust and consistent uptick in rents, registering a commendable 5.7% increase over the past year. Delving into the granular details of the data reveals a comprehensive picture of regional variations and month-on-month trends.

Examining the regional disparities, it becomes evident that the South West emerges as a frontrunner in rental growth, experiencing a striking 11% surge compared to the previous year, with average rents reaching ￡1,184 per property. In contrast, Greater London, while still reflecting an upward trajectory, witnessed a comparatively modest 3% increase in rents.

The month-on-month analysis provides further insights into the evolving rental landscape. Across England, rents edged up by 0.6% from March to April, with the East Midlands emerging as a standout performer with a notable 3% surge in rents compared to the preceding month. However, this upward trend wasn't uniform across all regions, as the West Midlands and Greater London experienced marginal declines of 1% and 0.15%, respectively.

Despite these localised fluctuations, Greater London maintained its position as the most expensive rental market, commanding an average monthly rent of ￡1,951, while the North East emerged as the most affordable region with an average rent of ￡863 per month.

The analysis of void periods, a critical metric indicative of market stability, revealed a consistent average duration of 19 days in April, with Greater London experiencing a slight reduction to 15 days. William Reeve, CEO of Goodlord, offered valuable insights into the data, emphasising the alignment of rent increases with earnings growth, suggesting market equilibrium. However, the lingering impact of inflation rates remains a pertinent consideration, albeit the rental growth rates have moderated compared to previous years, signalling a transition towards a more stable growth trajectory in the rental market.

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