However, average rents decreased slightly during what is traditionally one of the quietest periods in the rental calendar.
A modest drop in rental costs reflects a slightly cool December
Six of the seven regions monitored by Goodlord saw a small decrease in the average cost of rent during December. On average, the cost of a property dropped slightly; going from £1,087 in November to £1,071 in December, a reduction of 1.47%.
The biggest drop was seen in the South West where a 2.68% reduction in the cost of rent was recorded; prices dropped from £1,095 to £1,066.
The smallest changes were recorded in the North West and the West Midlands, where rents moved downwards by less than 1% respectively. The only region to see an increase in the average cost of rent was the North East, which saw a 1.36% increase - with prices moving up from £789 to £800.
Average rental costs are now at their lowest since June 2022. However, 2022 ended with average rents up by 8.7% across England, compared to 2021. The highest rental price averages throughout 2022 were found in Greater London (£1,796) and the lowest in the North East (£810), the same regional split as recorded in 2021.
The cost of rent peaked in August 2022, when prices reached a high of £1,227 across England on average. This was the highest ever rate recorded by the Index.
Voids hold steady at 20 days on average
The average void period for a rental in England remained at 20 days during December, with no month-on-month change in comparison to November.
The most significant shift in void periods was observed in the South West, which saw an 8.7% decrease in voids. This was followed by the East Midlands, which experienced a drop of 8%. There was also a fall recorded for the North East, which saw a 4.5% drop in the average void period in December.
In contrast, Greater London saw the highest percentage increase in voids last month, rising from 12 days to 13 days - a jump of 8.3%. This was followed by the South East, which saw a 5.6% rise in voids, and the West Midlands, which saw a 4.8% increase.
Tenant incomes show a slight drop entering the new year
The average income of tenants fell marginally from £31,105 to £30,346 during December, a decrease of 2.4%.
Over the course of the year, however, there was an average increase in incomes across all regions of 11.15%. With rental costs rising by 8.7% during the same period, the average increase in tenant incomes outstripped the pace of rent rises in 2022.
Tom Mundy, COO, Goodlord, comments: “The pace of lettings held steady in December overall, despite festive breaks and snow-induced slowdowns. This is a testament to the strength of the market and ongoing demand from tenants. We always expect to see a dip in activity and a drop in rental averages during November and December, so the steadiness of voids and the very marginal shift in rental costs this month mean we’re likely to see a very brisk pace across the lettings market in the early months of 2023.”
