Voids drop as renters rush to capitalise on cooling prices - Goodlord Rental Index
Void periods dropped across England during November as demand for rental properties continued apace. The average cost of rent was also down, further fuelling tenant demand to snap up new properties ahead of Christmas.
Void periods dropped across England during November as demand for rental properties continued apace. According to the latest Goodlord Rental Index, some regions saw voids decrease by as much as 30%. During the month, the average cost of rent was also down, further fuelling tenant demand to snap up new properties ahead of Christmas.
Voids reduce in November
The annual trends of low voids continued last month, decreasing from 19 days on average in October to just 18 days in November.
This brings voids below their year to date average of 19.5 days, reflecting the ongoing and strong demand for rental properties across England. The average void period for 2021 to date is a whopping 28% lower across the country compared to 2020 figures.
The biggest shift in voids in November was seen in the East Midlands, where averages dropped from from 24 days to just 16 - a 33% reduction. The North East also saw a big shift - from 20 days to 16 days - a drop of 20%.
Only two regions recorded an increase in voids. There was a modest increase in the West Midlands - from 19 to 21 days on average. The South West saw a more sizeable increase, with average voids rising from 17 days to 23 days.
Rents feel beginnings of winter chill
Whilst the average price of rent across England is currently 8% higher this year compared to 2020, November did see a slight cooling off of average prices.
The average price of rent for a property dipped by 2.5% - moving down from £1,006 in October to £980 in November.
The biggest change was seen in the East Midlands, which recorded a 5% reduction in the price of rent. This drop is also likely contributing to the region’s rapidly falling void periods.
All other regions recorded reductions in the average rental price of between 1 and 3.5%. The only region to see an increase was the West Midlands, although this was a negligible jump of just 0.15%.
Overall, November rental prices (£980) were also exactly the same as the year-to-date average of £979.
Tom Mundy, COO at Goodlord, comments:
"We would expect a slight slow down in December as moving plans get put on hold until after Christmas, so to see the market enjoy such a healthy November is really encouraging. Demand remains exceptionally high; something you can see reflected in the void periods, which remain much lower year-on-year. And whilst a slight dip in rental costs is being capitalised on by tenants, annual averages remain way up. We predict a very busy market in early 2022. There is still huge demand for properties and lots of tenants on the hunt for a new home, so agents should be prepared to cater to that come the New Year.”