Rents saw an autumn dip in October, following three months of rapidly escalating prices across England.
According to PropTech firm Goodlord the average rent on new tenancies dropped by 11 per cent over the last month. 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.
After three months of record breaking rental prices, October saw average rents on new tenancies revert back to levels last seen in May and June 2023. The cost of a rental property in England during October was £1,189 pcm - an 11 per cent reduction on September’s £1,346. The average rent is now seven per cent higher than the average price recorded a year ago.
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 per cent. The South East saw the next biggest shift with a 16 per cent 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 seven per cent.
As average rents dropped across the board, the average void period for a property in England lengthened in six of the seven regions monitored.
Voids were longer by 29 per cent 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 per cent rise. The South East saw a 50 per cent 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.
William Reeve, chief executive 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.”
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You should see the state of the commercial market
Oh dear
Is there a Commercial or Industrial Unit left that haven’t been knocked down or Converted to become Residential thanks to Computerisation that you all love. The Chickens are coming home to roost. So now just Collapse the Private Rented Sector and mission complete.
I am surprised there a Market at all following the unprecedented all out attack on Private Rented Sector and plenty more bias laws being manufactured to make sure to destroy.
There is no such thing as an average rent so many different properties anyway collapse the PRS and you’ll collapse the economy with those Treasonable Policy’s.
Landlord show today won’t be going.
Presumably the student market and new graduate jobs have a significant impact on demand in July, August, September. It's the same every year. September is insane for both last minute students and new graduates starting a new job often in a new city.
Once we get to mid October people start thinking about Christmas and decide they don't want the upheaval of moving until the New Year.
If you look at Good lord charts they always peak year on year in Sept. Expect another bumper rent rise year in 2024. Election or no election!
Agree, they are only going one way 🚀🚀
I have looked into my crystal ball & I see the sales market stalling too until the New Year!
Nothing like stating the obvious & regular fluctuations in the market & then drawing conclusions for the next year from them!
Ha ha rents are dropping? Tell me another one.
12 or 18 day voids? 20% & 16% drop in rents? Who do they work for, get these agents to give me a buzz and Ill help them build a process that means none, ever, and better rents for their landlords.
That aside Ive never got Goodlords stats at all, must be a tiny or niche sample, or they have an agenda with the message, rents are climbing every month, supply is worse than Ive ever known, demand at an all time high (ive said that a few times) and voids are like unicorns. Everyone I speak to, everything I read, its all says the same thing, property goes live, 50 enquiries in minutes, offers over asking price etc etc. The biggest challenge agents ask me about at the moment is how to manage the volume of tenant enquiries and select the one that will take the property, they are completely overwhelmed to a point they dont know how to cope.
Clearly these agents need better screening questions and then review tenant 'Rent CVs'!
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