Consistency In Year End Rental Market
Newly released figures from lettings technology experts, Goodlord, suggests demand for rental property in the UK was consistent in December. Even though the end of the year often sees a downturn in demand, and the pandemic causing further issues, it appears as though the year ended in a robust manner for the rental market.
The cost of rent was found to have remained steady, which is not unexpected with the festive period often being slow in the rental market. The majority of areas experienced a small shift in the rental prices.
The following regions saw a movement of less than 1%, in any direction:
- The North East of England
- The South East of England
- The Midlands
London experienced a dip of 1.7% and in the North West, there was a decline of 2.2%. The largest fall occurred in the East Midlands, with a 7% decrease in the cost of rent.
In the South West of the country, there was a very different story. This area experienced an increase in the average cost of rent, rising by 1.9%.
The average cost of rent, across the country, at the end of 2020 was £895.
Void periods fell in Greater London
There was also improvement for landlords with respect to void periods in December.
The North East and the South East saw numbers remain similar to November 2020. However, in Greater London, as well as the West Midlands, the South West, the North West and the East Midlands, there was a decrease in the average length of void periods.
The most significant drop occurred in the East Midlands, with average void periods dropping from 32 days to 20 days.
The average void period in the UK, as of November 2020 was 25 days, but at the end of the year, this had moved out to 21 days.
We are here to help local landlords
Tom Mundy, COO of Goodlord, comments: “The market numbers for December demonstrate how resilient the lettings sector is. The cost of rent and length of void periods held firm in what tends to be a slow patch for agents, highlighting the ongoing demand for rental properties across the UK.”
Tom continued by saying; “We are however starting to see clear signs of the pressure on wages, with average salaries now starting to slip. This is something most agents and landlords have been preparing for. And whilst it’s undoubtedly set to shift the focus of the market, we don’t predict that it will dampen demand for lettings overall.”
Tom concluded by saying; “In the main, these figures provide a strong indication that the coming months will be busy for the sector, especially seeing as house moves will continue to be permitted under the latest lockdown measures.”
If you are looking for guidance or assistance in the Enfield rental market, we can help. At The Letting Line, we are a specialist letting and property management agent serving Enfield, Barnet, Potters Bar, Brookmans Park and surrounding areas.
We can arrange a free valuation for you, and if you are looking to contact us, please call us on 020 8342 1234.