"The market is still under a lot of strain and demand continues to outstrip supply, but it’s encouraging to see that seasonable trends are holding strong despite these unprecedented pressures"
- William Reeve - Goodlord
The lettings market saw a post-summer dip in the price of rents in October, following three months of rapidly escalating prices across England.
The latest Goodlord Rental Index reveals that the average rent on new tenancies dropped by 11% over the last month, as the heat of July-September dissipated. At the same time, voids lengthened by 29% - from 14 days to 18 - another signal that demand is cooling as we head into the traditionally quieter winter months.
Rental prices drop by 11% after ‘soaring summer’
October saw average rents on new tenancies roll back to levels recorded in May and June 2023. The cost of a rental property in England during October was £1,189 - an 11% reduction on September’s £1,346.
The average price of rent in October 2023 (£1,189) is now 7% higher than the average price recorded in October 2022 (£1,111).
All seven English regions monitored by the Index saw a decrease in average prices.
The biggest swing was recorded in the South West, where rents reduced from £1,493 per month to £1,190; a drop of 20%. The South East saw the next biggest shift; with a 16% reduction. Averages decreased from £1,524 in September to £1,284 in October. The smallest change was recorded in the North East. Prices dropped from £939 to £870; a decline of 7%.
Voids lengthen as rental prices decrease
As average rents dropped across the board, the average void period (how long it stands empty between tenancies) for a property in England lengthened in six of the seven regions monitored. Voids were longer by 29% overall, increasing from 14 days in September to 18 days in October.
There was a very significant increase in the North East, with voids jumping from 9 days to 17, an 88% rise.
The South East saw a 50% increase; with voids lengthening from 12 to 18 days on average. The only region to record a reduction in the average length of voids was the West Midlands, where they reduced from 22 days to 18.
Average salaries creep up
There was also an increase in the average salary of renters taking on new tenancies during October. Average salaries rose from £35,386 in September to £36,135 in October - a rise of 2%.
William Reeve, CEO of Goodlord, comments: “We’ve seen the average level of rent on new tenancies drop from September to October every year for the last four years. It’s therefore not a surprise to see rental prices dropping this month, although the rapidly escalating prices recorded over the summer could easily have had a knock-on effect later into the autumn this year.
"The market is still under a lot of strain and demand continues to outstrip supply, but it’s encouraging to see that seasonable trends are holding strong despite these unprecedented pressures.”
