Buy-to-let landlords in England and Wales are facing void periods of just 11 days on average between tenancies, which is the lowest level ever recorded by Goodlord.
The property technology company found that landlords in the South West had the shortest wait for new tenants in August at only five days, eclipsing the region’s previous year-to-date low of nine days.
This was despite a significant increase in average monthly rents in the South West, with costs in the region rising by 20% to £1,126 per calendar month (pcm), up from £942pcm in July. Last month’s figures were well above the South West year-to-date average rental cost of £938pcm.
The North East also experienced record low void periods in August, dropping to just seven days on average. During the same period, the average monthly rent increased by 36% month-on-month to £897pcm.
In contrast, the longest void period was in the West Midlands where it took 15 days to fill a vacant property in August. But this was well below the year-to-date average for the region of 24 days.
Goodlord’s figures are based on tenancy agreements executed on its platform during the month.
Following a downturn in prices during July, August saw average rents increase in all but one of the eight regions monitored by Goodlord, taking the average rental costs for the UK to a year-to-date high of £1,031pcm.
London continued to have the highest average monthly rent in August at £1,684pcm, an increase of 5% on the previous month. The lowest average monthly rent was in the West Midlands at £722pcm, an increase of 2% on the previous month.
Three regions showed double-digit percentage increases on the previous month - the North East (36%), South West (20%) and East Midlands (16%).
Tom Mundy, COO at Goodlord, commented: “August is always a busy month for the industry and these numbers demonstrate a rising demand for high-quality rental properties across the UK.
“Void periods were at year-to-date lows across almost every region, something which will be welcomed by landlords and agents alike as the industry finds equilibrium following the tenant fee ban.
“We’ve also seen big jumps in average rental costs throughout a range of regions, demonstrating the release of pent up demand amongst tenants and a slew of higher value properties hitting the market as more homeowners look to the rental market against a backdrop of stagnant property prices.”
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I don’t agree with any of this you cannot lump London in with rest of Country, its not happening here because of Rogue help to buy Scheme whereby they get 40% up to £600k, only 5% Deposit and no Stamp Duty Land Tax, for new build only. Distorting the whole Market. Therefore existing property not selling but its total abuse of our taxes they use our taxes to destroy us. Buy to let disastrous if you buy now in London it will be buy to be vacant.
No shortage of good tenants in and around Norwich, just finished renovating a 2 bed bungalow in a village 15 miles from Norwich end of Aug, new tenants moved in 2nd Sept, £675, a friend finished renovating a 2 bed terrace in Norwich on a Friday last month, new tenants moved in on the Monday, £795. both 6% + yield.
Very good I am delighted for you but L’don is a different kittle. The rent is double here but your purchase here will cost you 3 / 4 as much, so we have to compare like with like.
I wouldn't want to be a landlord in London, I don't like the place.
ONLY s few weeks to know whether the PRS is to be destroyed by a potential Labour Govt.
Personally I will be bankrupted if Labour get in and carry out their looney housing policies.
There won't be much demand from tenants once they have been given our properties to our tenants!!
I don't think Labour will get in while Mr Corbyn is leader, he could just be our saving grace.
Im starting to sell now more rigourously but with 80 units it’s going to be like turning a large freight round but need to be one step ahead what a country we live in if it wasn’t for kids I’d be off but as soon as they are old enough that’s what I will do
Lets see if the RLA/NLA super combo will be able to put a stop to this. I think not. Their action is normally to try meet some junior minister with some capitulation proposal that ends up getting ignored. How the hell was a 6 week tenancy bond reduced to 5 weeks at the last hour? RLA didnt seem that bothered to me. Section 24 RLA didnt seem that bothered about that one either.
I'm starting to sell as well. Latest one is actually going to a first time buyer. (Another house less for a tenant that is not or doesn't wish to buy) For the record its being bought by a foreign couple not indigenous population. So as recent history on 'any immigration' welcome policy now demonstrates. We will NEVER have enough houses for people to live here never as they come in faster than we can build. I'm effectively having to sell a house that will inevitably be to a Labour voter and all the future ones under Mcdonnells Marxist scheme will go the same way. And that ladies & gentlemen is how politics works
Just curious as to what was preventing your FTB from buying BEFORE you put your property on the market!?
One presumes as is in fact the case that there are plenty of properties for FTB to purchase well before LL sell their properties forced to do so by the stupid S24 etc.
Which essentially proves that the alleged reason for S24 was a lie.
There were and are plenty of properties to buy before any LL properties are put up for sale.
Very few tenants will buy their rental properties at full market price.
It is highly unlikely that those who wish to be FTB can't do so due to not having sufficient deposit.
If Govt genuinely wished to ensure there were FTB it would allow HTB to be used for pre-owned properties.
Now with similar conditions that really would set the property market alight.
LL would be able to sell all their dud properties which won't be EPC compliant in 10 years time.
Get rid of all that dross to mug FTB.
Little will those FTB realise that they will only be able to sell to other homeowners.
No LL will want to buy a dud property which would require extensive and costly works to make it EPC C status.
But Govt DOESN'T seem minded to offer this.
I fail to see the obsession with new-build properties which are invariably of poor quality when compared to properties over 100 years old.
I have a traditional 2 bed terrace property and no way would I want a new-build version.
I do wonder at what point there will be insufficient rental accommodation.
It seems that despite LL selling up there is still a surplus of rental accommodation.
Until this surplus is used up I don't see there being a shortage of rental accommodation.
Of course LL need there to be a shortage so that rents may be increased.
But it would seem we haven't reached that stage yet.
I would suggest that there are still far too many properties seeking tenants which is very bad news for the PRS.
We do need reduced supply so we can jack up rents to realistic levels.
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