Rents in England increased further during April, although this was matched by another rise in tenant incomes – with the month setting a new record for take home pay, the latest Goodlord Rental Index shows.
During April, the average cost of rent for a property in England rose from £1,006 to £1,012 – a modest 0.5% increase.
All regions monitored saw an increase in prices of up to 1%, apart from in the northern regions.
The North East saw a larger increase in the cost of rent – with prices up by 2.34%. The North West, however, was the only region to see a drop in the average; recording a 1.6% decrease.
|
Region |
March 2022 |
April 2022 |
Month on month % change Previous Month |
|
East Midlands |
£844.97 |
£847.35 |
0.28% |
|
Greater London |
£1,688.37 |
£1,702.98 |
0.87% |
|
North East |
£731.94 |
£749.04 |
2.34% |
|
North West |
£819.84 |
£806.29 |
-1.65% |
|
South East |
£1,111.47 |
£1,113.21 |
0.16% |
|
South West |
£1,012.39 |
£1,020.22 |
0.77% |
|
West Midlands |
838.922 |
846.781 |
0.94% |
|
England average |
£1,006.85 |
£1,012.27 |
0.54% |
As prices creep up, so do salaries, according to the data provided.
In April, the average annual salary of a tenant living in England rose from £29,549 to £30,044 – a 1.7%. This means the current average is yet another Index record – the highest figure recorded to date.
Unsurprisingly, renters in London earn the most – taking home £44,920.38 on average. In comparison, those in North West (the only region to see a rental cost decline this month) earn the least – £24,403.69 on average.
Year-on-year, renters are now earning 16% more than they did at the same time in 2021.
|
Region |
March 2022 |
April 2022 |
Month on Month % change |
|
East Midlands |
£27,521.90 |
£25,669.40 |
-6.7% |
|
Greater London |
£42,425.24 |
£44,920.38 |
5.9% |
|
North East |
£25,732.26 |
£27,030.39 |
5.0% |
|
North West |
£24,394.61 |
£24,403.69 |
0.0% |
|
South East |
£32,258.77 |
£32,583.48 |
1.0% |
|
South West |
£27,788.20 |
£28,611.38 |
3.0% |
|
West Midlands |
£26,724.60 |
£27,089.41 |
1.4% |
|
England average |
£29,549 |
£30,044 |
1.7% |
According to Goodlord, voids rose slightly during the months, as the pace of deals cooled in some regions.
It was a less dramatic month for void periods in England, with increases recorded in every region monitored. The average void period for the country in April increased by three days – up from 16 days to 19.
The biggest shift was seen in the North West – where a rise of 37% was recorded (up from 16 days to 22). This was followed by Greater London, which saw voids increase from 11 days to 14 – a 27% rise. London, however, still has the lowest void periods in the country.
|
March 2022 |
April 2022 |
Month on Month % change |
|
|---|---|---|---|
|
East Midlands |
19 |
20 |
5.3% |
|
Greater London |
11 |
14 |
27.3% |
|
North East |
16 |
22 |
37.5% |
|
North West |
16 |
17 |
6.3% |
|
South East |
16 |
17 |
6.3% |
|
South West |
17 |
19 |
11.8% |
|
West Midlands |
16 |
22 |
37.5% |
|
England average |
16 |
19 |
18.8% |
Tom Mundy, COO of Goodlord, said: “The rental market continues to move apace. Rents are at the top end of what we’d expect for this time of year, but tenant salaries are keeping pace with this rise and continue to break records. And whilst voids have lengthened compared to March, all the signs point to a very buoyant market with a high demand for available housing stock.”
SOURCE: Property Industry Eye | MAY 3, 2022 | MARC DA SILVA
Estate Agents
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