The latest Rental Index from Goodlord has shown that March rents are now up by over 6% compared to year-on-year figures.
Additional analysis from Goodlord shows that the cost of rent in March 2024 is now 28% higher than in March 2020.
Month-on-month, the average price for a rental property held firm during March and voids remained unmoved, as demand from tenants stayed strong.
Cost of rent up 6% YoY and 28% since 2020
Rents in March were 6.4% higher than they were the same time last year, as the pressures on the rental market continue to put the squeeze on tenants. But the true impact of rental rises can be seen when comparing the last five years of Goodlord Rental Index figures.
In March 2020, just as the country was plunged into lockdown, tenants were paying £909 per property. This average now stands at £1,160 across England. This represents a rise of 28%.
The increase in rents began to escalate in 2022, when rents rose 10% year-on-year. Whilst the pace of increases has since slowed, rents continue to rise.
Rents hold firm after February jump
After a higher than expected rise in February, rents barely moved over the last month. The average rent for a property in England in March 2024 is £1,160, compared to £1,162 in February – a decrease of just £2 (or -0.2%).
The West Midlands and Greater London saw modest increases in the average cost of rent per property. All other regions recorded a decrease of less than 1.5%.
The highest rents can be found in Greater London, at £1,954, and the lowest in the North East, at £851.
Voids unmoved at 18 days
Voids were unchanged month-on-month, with the number of days a property is vacant in between tenancies holding at 18 days.
This is also the same void average recorded last year, in March 2023, meaning there has also been no movement in year-on-year averages when it comes to void periods.
William Reeve, CEO of Goodlord, said, “March was another strong performing month for the rental market, with rents and voids holding steady.
“However, the truly eye-opening data can be found in the year-on-year figures, which show just how rapidly rents across England have shifted since 2020.
“In this post-pandemic era, rent rises have consistently outstripped inflation; evidence of the needs of a growing tenant population colliding directly with lack of stock and a complicated combination of pressures facing landlords.”
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