The average cost in the UK increases by 4%

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Rental costs are rising across the country, led by the North West as its rental market continues to see strong demand from tenants.

Proptech company Good Lord released its latest Rental Index showing how rental prices have risen across the country over the past month. Renters in England can expect to pay an average of £1,006.85 for a property in March, up from £969.02 in February; an increase of 4.01%.

And it’s the North West that has seen the biggest rise, according to the study, where rents have risen by an average of 6.36% over the past month. This means tenants are now paying an average of £819.84 a month, up from £770.82 in February.

Greater London also appears to be regaining favor with tenants, with rents rising around 4.39% in the past month from £1,609.05 to £1,688.37; more than double what you would expect to pay in the northwest.

Cost of living: saving money in the northwest

The cost of living crisis is a major concern right now, with skyrocketing energy bills and fuel prices hitting millions of households. Accommodation costs are often the biggest monthly expense for people.

However, statistics show that the average salary of English tenants also increased in March, by 2.7%. Although this is of course less than the percentage increase in rent, it will make a difference for tenants. The average salary now sits at £29,549 for tenants nationwide.

On average buyers can expect to pay around £232,000 for a property in the North West. This is still well below the UK average, despite the region having seen some of the biggest house price increases in recent months.

Manchester, Liverpool and surrounding areas are all extremely popular hotspots for property investors and tenants. While offering ever-improving employment prospects, the locations also offer better value than areas in the South East and around London, which is another draw for people looking to buy and rent there.

Owners see shorter empty periods

Buy-to-let landlords should consider potential gaps when developing the potential ROI of a rental property. While empty periods sometimes cannot be avoided, landlords who can keep tenants in their properties longer will see the least amount of lost rent due to unoccupied properties.

According to research by Goodlord, vacuum periods have fallen in all parts of the country except the East Midlands, with an average drop of -11.1% across England.

Homeowners in the West Midlands had the best results, with a -27.3% drop in empty periods, from 22 days to just 16. In Greater London, the average time a house remains empty fell by -15 .4%, going from 13 days to 11, demonstrating the very competitive rental market that reigns there.

The North West also saw a drop of -11.1%, from 18 days to 16 days. Along with rent increases, this means that buy-to-let landlords will be able to earn good returns from their rental properties now.

Keep owners in the area

In recent months, demand among tenants for rental accommodation in the North West has soared, while available properties have fallen to record lows, meaning that buy-to-let properties are now in high demand. .

There has been evidence of fewer homeowners buying to let on the market, and many in the sector are calling on the government to act to encourage rather than deter landlords, because of the vital accommodation they are providing to the public. country’s huge renter population.

Tom Mundy, COO at Goodlord, said: “March was a very big month for the market. We now return to rental costs and the low periods of last summer, when the sector was last breaking records.

“Over the past month, rents have jumped quite significantly and vacancies are much lower than they have been all winter. All of this indicates high demand and low supply. It’s a reminder of the need to keep as many landlords in the industry as possible, to ensure demand can be met.

“These figures also indicate that rising rents will add an additional burden to tenants as the cost of living crisis continues to affect all aspects of the economy, despite the concomitant increase in the average wage per tenant.”

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