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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