Average rents rose nearly 9% over 2023 as a whole, compared with the year before, with several records broken during the summer in particular, according to the Goodlord Rental Index.
Month-on-month, rents dropped slightly from November to December, but yearly figures continued to show an increase.
Meanwhile, void periods hit historic lows during the year.
In 2022, rents averaged £1,086 per property; in 2023, annual averages were £1,182 – an uplift of 8.8%.
The highest rents of 2023 were recorded between July and September, where average rental property costs rose over £1,300 for the first time.
July 2023 showed the highest rental averages of the year, at £1,367 per property across England; rental averages in July 2022 were £1,239 – 9% lower.
London had the highest costs, with rents hitting 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), with Greater London seeing the highest rents (£1,974).
December 2023 rents were up 7% year-on-year – hitting an average of £1,147, compared with the December 2022 figure of £1,071.
On a monthly basis, average rents across the UK dipped by 1.7% across England, in a trend typically driven by lower activity over Christmas.
The highest rents in December were recorded in Greater London (£1,932), and the lowest were seen in the North East (£853) – more than 50% lower than rents in the capital.
Voids held steady year-on-year, with the average void period in December 2023 coming in at 20 days, matching December 2022’s average.
However, across the course of 2023, England’s overall void average shortened to just nine days in July 2023.
Regionally, the shortest void period was recorded in the North East in July 2023, at just 6 days.
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.”
