Rents were nearly 9% higher across 2023 as a whole compared to average rents recorded in 2022, the latest Rental Index from Goodlord has revealed.
This is despite month-on-month rents dropping slightly from November 2023 to December 2023.
In 2023 rents stood at £1,182 per property, up from £1,086 in 2022.
Oli Sherlock, managing director of Insurance at Goodlord, said: “It’s been a rollercoaster year for the market, with rents ending the year significantly up compared to 2022 figures.
“We’ve seen first-hand the unprecedented levels of demand for rental properties, as a growing tenant population has come face-to-face with the entrenched supply and demand issues facing our housing market.
“The lettings industry has striven to keep pace with this demand, as evidenced by some of the historically low void periods we’ve seen throughout 2023.
“Many agents will have been catching their breath over December, but it’s looking like 2024 will be another year of high rents, escalating demand, and ongoing regulatory changes which will keep the whole market on its toes.”
London saw the highest regional rents, where they hit a record £2,275 per property during September. In London during September 2022, rents were £2,055 – 10% lower.
Across 2023 as a whole, the North East recorded the cheapest average rents (£874 on average across 2023), with Greater London seeing the highest rents (£1,974 on average across 2023).
December 2023 in review
December 2023 rents were up 7% year-on-year, hitting an average of £1,147 last month compared to the December 2022 figure of £1,071.
The month saw a small decrease in month-on-month rents, when compared to November figures. Average rents across the UK dipped by 1.7% across England overall during December – a trend typically driven by lower market activity over Christmas.
The highest rents were recorded in Greater London, at £1,932. The lowest rents were seen in the North East, where average cost per property came in at £853 – more than 50% lower than rents in the capital.
