Rents fall as lettings market shows first signs of cooling

The intense heat felt across the lettings market over recent months appears to have cooled a little according to the latest rental index from PropTech firm Goodlord. 

Average rents in England dropped by 11 per cent during October, taking costs down to their lowest levels since June. At the same time, voids ticked up from 15 days to 18 days - a rise of 20 per cent.

The cost of a property to let in England is now £1,111 per calendar month, down from £1,249 in September 

All seven of the regions monitored by Goodlord recorded a reduction in prices. The South West saw the biggest change. After prices surged during the summer, last month brought a 20 per cent reduction in average prices: moving from £1,422 in September to £1,126 in October. 

The South East also saw a sizeable decrease; with average rental costs dropping from £1,420 to £1,194 - a 15 per cent reduction. 

However, on an annual basis, rental prices remain up by 10 per cent on average, when compared to 2021 prices. 

Average voids also increased across England during October, rising from 15 in September to 18 days last month. Six out of seven regions monitored recorded a rise in voids, but the shift was more pronounced in certain areas. 

Average voids also increased across England during October, rising from 15 in September to 18 days last month. Six out of seven regions monitored recorded a rise in voids, but the shift was more pronounced in certain areas. 

Voids in the North East doubled during October, rising from nine days to 18. And averages in the South East jumped from 13 days to 19 days. 

The only region to see a reduction in voids was the West Midlands, where void averages dropped from 23 days to 19 days. The West Midlands region also saw one of the smallest decreases in the cost of rent. 

Voids are now five per cent lower year-on-year, compared to 2021 figures. 

The chief operating officer at Goodlord, Tom Mundy, says: “The market has been red hot for several months and we’ve had a consistent trend of rising prices and ever lower voids. As we head towards winter, we would expect to see a cooling of activity and so it’s no surprise that the streak of ever rising prices is beginning to dissipate. 

“However, it’s vital to remember that, in year on year terms, prices are much higher than in 2021 and voids are lower. In this context, it’s clear that the market remains very busy and pressure on available stock will continue whatever the weather.”

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions.
If any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals, then the post may be deleted and the individual immediately banned from posting in future.
Please help us by reporting comments you consider to be unduly offensive so we can review and take action if necessary. Thank you.