Posts with tag: Goodlord

Increase in rent arrears during May, according to Telegraph Money research

Published On: June 5, 2020 at 8:06 am


Categories: Landlord News,Tenant News

Tags: ,,,

Research undertaken by lettings platform Goodlord for Telegraph Money has noted an increase in rent arrears during May.

The results show that 6.6% of the 16,000 rental properties included in the survey were in arrears for a minimum of one week during last month. In comparison, the arrears rate for April was 5.8% and the overall typical rate sits at 4%.

With around 4.6 million private rented homes in the country, this figure suggests more than 300,000 tenants are struggling with rent payments.

Franz Doerr, CEO of flatfair, has commented: “As more firms start to furlough staff and others cease trading due to the economic impact of the virus, swathes of young renters up and down the country will see their incomes plummet and may not be able to pay their rent. The mounting rent arrears crisis will get worse before it gets better.

“This may, in turn, see many landlords struggling to meet their own obligations such as mortgage repayments. Landlords and tenants alike need to be given the space to negotiate repayment plans that ensure that everyone is treated fairly.”

Landlords are still currently unable to evict tenants for falling into arrears with rent payments due to an overall ban on evictions. This is scheduled to end on 25th June, with Generation Rent calling for an extension.

Average void periods and rent prices drop in the final month of 2019

Published On: January 9, 2020 at 9:26 am


Categories: Lettings News

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According to Goodlord’s latest Rental Index, both average rents and average void periods saw a drop in December 2019.

Rent prices

The index shows that most rents remained the same as they were in November, with some showing a dip. The largest decrease was recorded in the North East. Average rent prices fell by 3%, from £607 to £588.

However, Greater London did see an increase of 2%. The North West and Wales also experienced a 3% increase.

The average cost to rent a property in the UK during December was £902. This is compared to the 2019 annual average of £927 per month.

Void periods

During December the average number of void periods dropped from 24 to 19 days across England and Wales. This is below the year’s average of 20 days.

Tom Mundy, Chief Operating Officer at Goodlord, said: “Mid-November leading into December is traditionally quiet for the rental market, so these numbers are actually quite encouraging.

“Rent decreases were slight across most regions, alongside some modest increases, with other regions holding steady.

“Void periods were down in the majority of regions as tenants looked to finalise leases ahead of the Christmas break.

“We ended the year sitting slightly higher than 2019 averages on some key metrics – an encouraging note to round off what has been a seismic year for the industry.”

The Rental Index also revealed that the average age of those renting their homes in the UK has remained at 34 years for the third month in a row.

£23,615 has been recorded as the average income of tenants in December, increasing slightly from £22,726 in November.

Unsurprisingly, London remains to be the most expensive area in the UK to rent. Meanwhile, the North East, Wales, and the Midlands have been noted as the most affordable regions.

Void period lengths and average rent prices revealed in October Rental Index

Published On: November 11, 2019 at 10:36 am


Categories: Landlord News

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Goodlord’s Rental Index for October 2019 has been released, showing mixed results for void periods in the UK.

The report highlights that the UK average for void periods remained at 18 days during October. This showed no change to the previous month’s data.

The following regions have seen an increase in void period lengths since August:

  • North West

August: 14 days

September: 19 days

October: 19 days

  • North East

August: 7 days

September: 10 days

October: 25 days

  • South West

August: 5 days

September: 18 days

October: 18 days

  • South East

August: 10 days

September: 14 days

October: 25 days

In the West Midlands. void periods increased from 15 days to 34 days in August to September. In October it dropped to 20 days. The East Midlands has seen a similar movement, with August at 13 days, September at 20 days and October at 17 days.

October figures for Wales show an average 10 day void period, down from 23 days in September. The length was at 14 days in August.

London has seen little change, going from 14 days in August to 11 in September and then back up to 14 days in October.

The index also looks at average rent costs, showing a slight dip. The average sat at a 2019 high of £1,034 in September and fell to £925 in October.

Tom Mundy, COO at Goodlord, said: “After a fantastic summer for lettings followed by a more tempered start to the Autumn, the rental market is starting to stabilise in key regions across the UK.

“The numbers indicate a return to consistency across void periods and rental prices, although this is being felt at different rates depending on the region. 

“Overall, void periods are generally below or on par with annual averages, and average rents across most areas of the UK are returning to expected levels.”