Cost of renting up 1.95% in the North West in July, compared to a 1.11% fall in the West Midlands
More than half of the UK’s regions registered a decline in the cost of renting in July, the latest Rental Index by Goodlord reveals.
Between June and July, the average monthly rent paid by tenants across the entirety of the UK, excluding Scotland, edged down from £907 to £906 or 0.1%.
Renters in the West Midlands saw the biggest fall in rental payments between the months, with rents declining by 1.11% or £8 to an average of £711.
In London, rents decreased by 0.78% to an average of £1,608, closely followed by a 0.75% decline in Wales, -0.48% in the South West, and -0.32% in the South East.
By comparison, the cost of renting grew by 0.20% in the North East, 0.61% in the East Midlands, and 1.95% in the North West.
London remained the least affordable UK region for renting, with an average affordability ratio of 3.3 in July compared to an average of 3.4 so far this year.
This is significantly higher than the 2.5 minimum ratio which Goodlord calculates by dividing a tenant’s guaranteed annual income by their yearly rent.
The North East, West Midlands, and Wales were the UK’s most affordable regions for tenants with an affordability ratio of 3.9, followed by 3.8 in the North West.
In addition, every region covered by the index registered a shorter void period in July, with Tom Mundy, Goodlord’s Chief Operating Officer, saying:
“June and July’s void figures are much lower than the 2019 average void periods for each region, perhaps indicating the release of pent up demand from tenants who postponed decisions until after the tenant fee ban came into force. This is good news for agents and landlords at a time of industry flux.”
But the ban on lettings fees has also resulted in record numbers of tenants seeing their rents increase, according to ARLA.