Rents drop by 11% as Summer heat finally leaves the market

The lettings market saw a post-summer dip in the price of rents in October, following three months of rapidly escalating prices across England. According to the latest Goodlord Rental Index, the average rent on new tenancies dropped by 11% over the last month, as the heat of July-September dissipated. 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.

1. Rent prices drop by 11% after soaring summer
2. Voids lengthen as rental prices decrease
3. Average salaries creep up
4. William Reeve, CEO of Goodlord, reacts

Average cost of rent stays high

The average price of rent dipped slightly between July and August, with prices across England coming down by 1.5% to an average of £1,347 per property. Despite not beating July’s Index setting record of £1,367, August 2023 prices are up 10% compared to the same time last year. Average rental costs are also 15% higher than the 2023 year-to-date average.

Prices across the summer are typically driven up by an influx of student lets. This year, this has combined with historic pressures on the rental market; driving up prices to record-breaking highs.

Greater London and the South East saw the biggest rise in average prices

The capital saw an upward swing of +8%, with the South East recording the highest rise, with rents up by +14%.

However, it was a different picture in the North West, which saw a drop of -20% in average prices. This mirrors the pattern seen in the region last year (2022); a major July spike in rents, followed by a more subdued August.

Rents also dropped in the North East (-6%) and the South West (-10%). Both regions saw huge increases in rental costs during July. 

Void periods edge up after record-breaking July

Voids also saw a slight cooling off after the intensity of July, with average void periods rising from 9 days to 13 days in August. However, this still makes August the second lowest month for voids since July 2022.

The biggest shift was seen in the South West, where voids rose from 6 days to 13. This was followed by the North West, where averages jumped from 7 days to 14. Both regions also recorded the biggest dips in the average cost of rent.

Greater London and the South East, which both saw a rise in rental costs, recorded no change in average void periods. 

Source: Goodlord