Rents Up, Voids Down - but a warning of "tricky" months ahead

The average cost of rent across England dipped one per cent during August, taking prices down to a national average of £1,227.54. 

The figure comes from PropTech firm Goodlord.

However, rents remain up by 12 per cent year on year, as demand for lets continues to put pressure on existing stock. 

Average prices were down in the North East, South West, and the North West, where the biggest drop was recorded. 

Rental costs in the North West region dipped from £1,213 to £982 - a 19 per cent decline. Despite the steep decline in the region, such a drop was predicted following a record breaking July for the North West, when costs were driven up by a surge in high value student lets being processed. 

Other regions saw prices continue to climb. 

The South East saw the biggest rise: with rents increasing from £1,229 to £1,385, a rise of 12 per cent. Greater London also recorded a jump: up from £1,797 in July to £1,924 in August, a rise of seven per cent.

After July saw the Goodlord Index’s lowest ever void rates, August recorded a more predictable pace for the market, with the void average rising from July’s historic low of 10 days to 14 days this month. 

However, this average is 6.6 per cent lower than void periods seen at the same time in 2021. 

The biggest shift this month was seen in the South West, where voids took a big jump from five days to 14 days on average. The North West also saw a big increase: up from seven to 17 days.  The only region to hold steady was Greater London, where voids remained at 11 days. Void averages in the capital are now 15 per cent lower year on year, when compared to 2021. 

Tom Mundy, chief operating officer of Goodlord, comments: “Following a record-breaking July, this month’s metrics are slightly more measured, but continue to set new year-on-year benchmarks. 

“Properties are in high demand, with fewer homes on the market than the number of tenants looking to rent them. 

“As landlords and agents gear up for what could be a tricky winter - with a raft of new legislation coming down the track and a period of economic uncertainty for tenants as rising rents meet escalating energy bills  - the lettings market shows no immediate signs of slowing down."

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