Goodlord's August Rental Index shows that voids were up across the country after July’s historic lows, and the cost of rent dipped fractionally - but was still up 12% year on year.
England’s rental market continued to move at breakneck pace during August, although rental costs and void averages took a month off from their record breaking streak, according to Goodlord's Rental Index. Voids were up across the country after July’s historic lows, and the cost of rent dipped fractionally.
Cost of rent up 12% year on year, despite mixed August for regions
The average cost of rent across England dipped by 1% during August, taking prices down to a national average of £1,227.54. This followed a rent average in July which was the highest ever recorded by the Index.
However, prices remain up by 12% year on year, as demand for lets considers to put pressure on existing stock.
Average prices were down in the North East, South West, and the North West, where the biggest drop was recorded.
Rental costs in the North West region dipped from £1,213 to £982 - a 19% decline. Despite the steep decline in the region, such a drop was predicted following a record breaking July for the North West, when costs were driven up by a surge in high value student lets being processed.
Other regions saw prices continue to climb. The South East saw the biggest rise: with rents increasing from £1,229 to £1,385, a rise of 12%. Greater London also recorded a jump: up from £1,797 in July to £1,924 in August, a rise of 7%.
Voids climb up after record breaking July
After July saw the Index’s lowest ever void rates, August recorded a more predictable pace for the market, with the void average rising from July’s historic low of 10 days to 14 days this month. However, this average is 6.6% lower than void periods seen at the same time in 2021.
The biggest shift this month was seen in the South West, where voids took a big jump from 5 days to 14 days on average. The North West also saw a big increase: up from 7 days to 17 days.
The only region to hold steady was Greater London, where voids remained at 11 days. Void averages in the capital are now 15% lower year on year, when compared to 2021.
Average income for tenants rose very slightly during July - up by 1% to £29,637 per tenant (compared to £29,275 in June). The biggest salary shift was seen in the East Midlands, where tenant take-home pay rose by 15% - going up from £26,797 to £30,918.
Tenant salaries see uplift
Average tenant salaries rose by 0.8% this month, increasing from £29,637 in July to £29,883 in August.
The age of tenants dipped slightly, taking the average down to 32. The last time the average age was this low was August 2021, reflecting the number of student renters signing tenancies in the summer months.
Tom Mundy, COO at Goodlord, comments:
“It’s been another hectic month for the market. Following a record-breaking July, this month’s metrics are slightly more measured, but continue to set new year-on-year benchmarks. Properties are in high demand, with fewer homes on the market than the number of tenants looking to rent them.
"As landlords and agents gear up for what could be a tricky winter - with a raft of new legislation coming down the track and a period of economic uncertainty for tenants as rising rents meet escalating energy bills - the lettings market shows no immediate signs of slowing down.”
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