A snapshot of the UK property market
The latest data reveals some significant trends in the ever- evolving UK rental market. The average rent for new tenancies confirmed in November last year has seen a considerable increase of 7.3% year-on-year. This increase is even more striking when we compare the previous year's average price per property (£1,087) with today's figure of £1,166.
REGIONAL RENTS
NORTH WEST STEALS THE SHOW
When we take a closer look at different regions, the North West has seen the most substantial year-on-year change for confirmed November rents, with an impressive 11% increase compared to the previous year. Other regions are not far behind, though, as the East Midlands, North East, South East, South West and West Midlands have all experienced rises of over 7%.
SEASONAL SLUMP? NOT QUITE
Traditionally, the letting market slows down as winter sets in. However, sustained market demand has ensured thatrents remain broadly steadyin November, compared to October figures. Despite a marginal decrease of less than 2%, the average rent for new tenancies across England holds strong at £1,166.
OCTOBER TO NOVEMBER SHIFTS
This slight dip between October and November is not an anomaly. In fact, the Index has recorded a month-on-month decrease for five consecutive years from 2019 to 2023. Regions like the East Midlands, South East and West Midlands witnessed almost no price movement during November, with shifts of less than 1%.
LONDON'S ROLLERCOASTER RIDE
Greater London, however, tells a different tale. This region has consistently seen a drop in rents between October and November each year since 2019. Last month, the capital saw a 4% decrease in average rent for new tenancy agreements, bringing average prices back to their June and July levels.
AVERAGE VOID PERIODS LENGTHENING
Another noticeable trend is the lengthening of average void periods from 18 to 20 days in November, marking an 11% increase. This figure matches the void period recorded in November 2022.
REGIONAL VARIATIONS
THE SOUTH EAST STANDS OUT
While most regions held steady compared to October, the South East was the only one to record shorter void periods over the last month, with averages dropping from 18 days to 17. Greater London and the South West saw the most significant changes, with void periods increasing from 12 days to 16, and 16 days to 26, respectively.
TENANTS' AGE AND SALARIES SEE A GRADUAL INCREASE
The average salary of a renter confirming a new tenancy in November was £36,871, showing a slight 2% increase from October's figure of £36,135. Similarly, the average age of tenants taking out tenancies in November was 34, slightly higher than the 2023-to-date average of 33 years.
YEAR OF CHANGE, THE BIGGER PICTURE
While month-on-month patterns follow the expected seasonal variations, the year- on-year data sheds light on how much the market has transformed over the last 12 months. Rents have risen by over 7% compared to November 2022, reflecting the intensity of demand the market has experienced.
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