Rents rise alongside incomes during March

Rents and tenant incomes both rose across England in March whilst the average void period for a rental property stayed steady month-on-month, the latest rental index from Goodlord has found.

Tenant income rose in most regions with the biggest rise being recorded in the North West, where tenant incomes increased by 12% from £19,609 to £22,022 on average.

The East Midlands, Greater London, North East, and South West also recorded increases.

The South East saw a slight (0.5%) decrease. However, the only sizeable reduction in average tenant income was recorded in the West Midlands. Salaries in the region dipped by 6%, taking earnings down from £24,141 to £22,663, on average. The average salary of a tenant in England is now £24,817. The average for the past 12 months now stands at £24,402.

Every region saw rents increase in March with the largest shift being seen in the East Midlands, where rents rose by 3.2%. This was followed by the South East, which saw a 2.3% increase.

The West Midlands, South West and North West all recorded increases of less than 1%. Greater London and the North East saw increases of between 1% and 2%.

The average cost of a rental property in England is now £885 per property, per month. This has risen from £872 in February.

The average void period in England remained at 21 days during March, marking no change on the February average.

Tom Mundy, COO at Goodlord, said: “As we start the process of lockdown easing, the rental market is particularly buoyant. It’s really encouraging to see tenant salaries start to increase and for average rents to be holding firm, along with voids.

“There are still uncertainties on the road ahead, particularly for agents and landlords handling student lets, but the underlying strength of the rental market is clear from the latest figures and we expect to see a strong summer of activity.”

Written by: Houseladder