Pace of rent rises is starting to slow – Goodlord

Rents across England continued to hold steady in September, breaking the £1,400 barrier for the third consecutive month, according to the Goodlord Rental Index.

However, there were signs that the rapid pace of rent increases might be starting to slow.

The average price for a rental property was £1,417 – that’s marginally lower than August’s £1,438 but still up by more than 5% year-on-year.

While this is a significant increase, it is slightly smaller than the averages seen earlier in the year, suggesting a potential softening of the market.

The firm says that in recent months monthly rent rises have been 7% or more, with September’s figure of 5.3% being a ‘modest’ rise.

Rents are still very high

Goodlord’s chief executive, William Reeve, said: “Rents are behaving fairly normally for this time of year – slightly down compared to August, as is often the case, but still very high.

“However, when you read between the lines, there are some signs that prices and affordability could be softening.

“Year-on-year figures for rent rises aren’t quite as intense as we’ve seen in recent months, and it was better news for tenants around average salaries.”

He added: “It’s too soon to tell but this could be a sign that the rental cost ‘bull run’ is starting to taper off ahead of the winter.”

Some areas saw higher rent rises

Regional variations in rent prices persist, with some areas experiencing much higher year-on-year increases than others.

The South West saw the largest rise, with rents up by 11%, while the North West and West Midlands recorded increases of 2-3%.

Greater London saw a significant increase of almost 8% month-on-month to hit £2,376.

Voids hold steady

Voids held steady at 15 days on average but Goodlord says there are regional variations.

The data shows that voids lengthened in the South West (15 to 18 days), the West Midlands (20 to 22 days) and the South East (11 to 12 days).

Voids shortened in Greater London (12 to 10 days), the North East (12 to 10 days), and the North West (18 to 14 days).

The average salary of renters signing tenancies rose by almost 2% in September, outpacing the year-on-year increase in rents.

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