Lettings market ends 2023 with major year-on-year increase in rents

Average rents were nearly 9% higher across 2023 as a whole compared to average rents recorded in 2022, the latest Rental Index from Goodlord reveals.

Despite month-on-month rents dropping slightly from November 2023 to December 2023, year-on-year figures show rents hugely increased throughout the course of 2023, with several records broken during the summer. Alongside these rises, void periods also hit historic lows during 2023.

RENTS ACROSS ENGLAND ROSE

Across 2023 as a whole, average rents across England rose by almost 9% when compared to 2022 averages.

In 2022, rents averaged £1,086 per property. In 2023, annual averages were £1,182 – an uplift of 8.8% year-on-year.

The highest rents of 2023 were recorded between July and September. These record-breaking months saw average rental property costs rise over £1,300 for the first time as tenants scrambled to secure properties amidst a supply crunch.

July 2023 took the title for highest rental averages of the year, soaring to £1,367 per property across England. In contrast, rental averages in July 2022 were £1,239 – 9% lower.

And London took the 2023 regional rental costs crown, with rents hitting a record £2,275 per property during September. In London during September 2022, rents were £2,055 – 10% lower.

Across 2023 as a whole, the North East recorded the cheapest average rents (£874 on average across 2023), with Greater London seeing the highest rents (£1,974 on average across 2023).

ROLLERCOASTER YEAR

Oli Sherlock, Managing Director of Insurance at Goodlord, says: “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.”

He adds: “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.”