Rents continue to rise across the country, while voids start to increase in August - Goodlord Rental Index
The market looks strong heading into autumn, with rents continuing to climb across most of the country in August, and national average for void periods remaining low.
Rents continued to climb across most of the country in August, with Goodlord's Rental Index again recording a highest figure for monthly average rents for two years. While the overall average void period increased slightly, the national average remains low, indicating that the market is strong heading into autumn.
It was a mixed picture for void periods in August, with only three monitored regions continuing the downward trend in average void periods seen in recent months. However, all regions are still recording void periods below their annual average and the overall average void period in England remains low at 15 days.
The North West saw the biggest month-on-month decrease in August, with its average void period dropping from 20 days in July to 18 days in August - a decrease of 10%. London and the East Midlands also saw their average void period reduce by 1 day in August.
The average void period climbed by 66% in the South West in August, from 9 days in July to 15 days in August. Smaller increases were also recorded in the North East and South East.
There was no change in the West Midlands, with the average void period remaining steady at 18 days.
Cost of rent
Rents continued to climb in England in August, bringing the average rent across the country to £1,097.41 - an increase of 3.5% on last month's already record-breaking figure for the Goodlord Rental index of £1,060.50.
In the South East, the average monthly rent hit £1,293 in August, up 14% from £1,137.29 in July. Other areas to see significant shifts were the East Midlands, where the average monthly rent is now £946.89 - a month-on-month increase of 7% - and London, where the average monthly rent increased by 6% from £1,631.10 in July to £1,725.77 in August. Small increases were also seen in the West Midlands and the South West.
The North East and North West were the only regions to register decreases in average monthly rents. In the North East, the average monthly rent dropped by 7% to £809.79 in August, while in the North West, the average monthly rent decreased by 5% to £807.17 - the lowest in the country.
Average tenant income
The average tenant income decreased by 6% in August, which means the average tenant in England is now earning £25,264. Excluding London, the average tenant income is £23,566.
Tom Mundy, COO of Goodlord, comments: "The picture for the lettings market remains mostly positive heading into Autumn. August has capped off a hugely busy summer for the industry.
"Lack of stock could be contributing to rising rents in much of the country, but, with average void periods remaining low, the indications are that demand remains strong heading into September and letting agents can expect a busy few months as we head into the final quarter of the year."