Rental market catches its breath in cooler October - Goodlord Rental Index
Average rental costs in England dropped by 11% during October while voids ticked up from 15 days to 18 days, according to the latest Goodlord Rental Index.
The intense heat felt across the lettings market over recent months appears to have cooled somewhat, according to our latest Rental Index. Average rental costs in England dropped by 11% during October, taking costs down to their lowest levels since June. At the same time, voids ticked up from 15 days to 18 days - a rise of 20%.
Rents record first drop in 4 months
After several months of rising rental costs, prices in October dipped by 11% on average. The cost of a property to let in England is now £1,111, down from £1,249 in September.
All seven of the regions monitored by Goodlord recorded a reduction in prices.
The South West saw the biggest change. After prices surged during the summer, last month brought a 20% reduction in average prices: moving from £1,422 in September to £1,126 in October.
The South East also saw a sizeable decrease; with average rental costs dropping from £1,420 to £1,194 - a 15% reduction.
However, rental prices remain up by 10% on average, when compared to 2021 prices.
Voids shoot up in some regions
Average voids also increased across England during October, rising from 15 in September to 18 days last month. Six out of seven regions monitored recorded a rise in voids, but the shift was more pronounced in certain areas.
Voids in the North East doubled during October, rising from 9 days to 18. And averages in the South East jumped from 13 days to 19 days.
The only region to see a reduction in voids was the West Midlands, where void averages dropped from 23 days to 19 days. The West Midlands region also saw one of the smallest decreases in the cost of rent.
Voids are now 5% lower year-on-year, compared to 2021 figures.
Tenant incomes rises
The average annual income of tenants also rose during October. The Index recorded an increase of 2%, with tenant salaries increasing from £29,933 to £30,717 per person.
Tom Mundy, COO at Goodlord, comments:
“The market has been red hot for several months and we’ve had a consistent trend of rising prices and ever lower voids. As we head towards winter, we would expect to see a cooling of activity and so it’s no surprise that the streak of ever rising prices is beginning to dissipate. However, it’s vital to remember that, in year on year terms, prices are much higher than in 2021 and voids are lower. In this context, it’s clear that the market remains very busy and pressure on available stock will continue whatever the weather.”
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