August sees rents remaining red hot

August sees rents remaining red hot

9:35 AM, 4th September 2023, About 9 months ago 1

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The rental market remained ‘boiling hot’ in August, with the cost of rent up 10% year-on-year, according to the latest rental index from Goodlord.

Despite average rents dropping slightly after a record-breaking July – where average prices went over the £1,300 mark for the first time – tenants continue to face high prices.

Void periods in August eased slightly compared to July’s historic lows but continued to stay much lower than year to date averages.

The average price of rent fell by 1.5% between July and August, with prices across England reaching an average of £1,347 per property.

Not surprising to see a slight dip in average rents

The chief executive of Goodlord, William Reeve, said: “There were so many records broken in July, it’s not altogether surprising to see a slight dip in average rents and slightly longer void periods during August.

“However, when you look at the bigger picture, the market is clearly still running extremely hot.”

He added: “Year-on-year averages for rental costs are significantly increased, with the £1,300 per month barrier now broken for a second month in a row.

“September often brings with it the annual peak in prices, so it’s likely that we’ll see another month of high rents and short voids before any seasonal shift in pace kicks in.”

Historic pressures driving up prices

Rents across the summer are typically driven up by an influx of student lets but this year there are historic pressures driving up prices to record-breaking highs.

Greater London and the South East saw the biggest rise in average prices with prices in the capital rising 8%.

But the biggest rent rise was for tenants in the South East with rents jumping by 14%.

In the North West, rents fell 20% in average prices and this follows last year’s pattern.

Big rent rises in July

Rents also dropped in the North East by 6% and the South West by 10%) – and both regions had seen big rent rises in July.

Voids also saw a slight cooling off after the intensity of July, with average void rising from nine days to 13 days.

However, this still makes August the second lowest month for voids since July 2022.

The biggest shift, the index reveals, was seen in the South West, where voids rose from six days to 13.

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14:21 PM, 4th September 2023, About 9 months ago

Rent controls are needed in some areas of the country.

House prices need to adjust to the near normal rates that we have today. Inflation will help but house prices need a serious correction. Lower house prices will lead to lower rents.

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