Rents fall and voids rise in England’s lettings market

The lettings market in England experienced a post-summer slump in October, with rents on new tenancies falling by 11% and voids increasing by 29%, according to the latest Goodlord Rental Index.

The report, which tracks key indicators of the rental sector across seven regions in England, shows that the average rent for a new tenancy in October was £1,189 per month – down from £1,346 in September.

This is a reversal of the trend seen in the previous three months, when rents reached record highs across the country.

However, the average rent in October was still 7% higher than the same month last year, when it was £1,111.

‘Average level of rent on new tenancies drop’

Goodlord’s chief executive, William Reeve, said: “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.”

He added: “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.”

A decrease in average rents in October

All regions monitored by the index saw a decrease in average rents in October and landlords in the South West saw the biggest drop of 20%, from £1,493 to £1,190.

The South East followed with a 16% decline, from £1,524 to £1,284.

The smallest change was in the North East, where rents fell by 7%, from £939 to £870.

The index also reveals that the average salary of renters taking on new tenancies increased by 2% in October, from £35,386 to £36,135.

This suggests that renters are still able to afford higher rents despite the economic uncertainty caused by the pandemic.

Average void period for a property in England

As rents cooled down, voids heated up with the average void period for a property in England rising from 14 days in September to 18 days in October – a 29% increase.

This is a sign that demand is slowing down as the winter season approaches.

The North East had the most significant rise in voids, from 9 days to 17 days – an 88% jump, while the South East also saw a big increase of 50%, from 12 days to 18 days.

The only region that bucked the trend was the West Midlands, where voids reduced by 18%, from 22 days to 18 days.

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