8:05 AM, 2nd November 2022, About 7 months ago 2
The lettings market appears to have cooled down with rents dipping in every region for the first time since June and most areas seeing an increase in voids, a rental index reveals.
The findings from Goodlord show that average rental costs in England dropped by 11% during October, taking rents down to their lowest levels since June.
All seven of the regions monitored by Goodlord recorded a reduction in prices, and the average cost of a property to let in England is now £1,111, down from £1,249 in September.
Goodlord says that the South West saw the biggest change after prices surged during the summer and last month brought a 20% reduction in average prices.
Landlords saw rents fall from £1,422 in September to £1,126 in October.
The South East also saw a sizeable decrease; with average rental costs dropping from £1,420 to £1,194 – a 15% reduction.
However, rental prices remain up by 10% on average, when compared to 2021 prices.
Average voids also increased across England during October, rising from 15 days in September to 18 days last month – a rise of 20%.
Six out of seven of the regions monitored recorded a rise in voids, but the shift was more pronounced in certain areas.
For example, voids in the North East doubled during October, rising from 9 days to 18.
And averages in the South East jumped from 13 days to 19 days.
The only region to see a reduction in voids was the West Midlands, where void averages dropped from 23 days to 19 days.
Compared to 2021 figures, voids are now 5% lower year-on-year.
Landlords in the West Midlands also saw one of the smallest decreases in the cost of rent.
The average annual income of tenants also rose during October with the Index recording an increase of 2%, with tenant salaries increasing from £29,933 to £30,717 per person.
Tom Mundy, COO at Goodlord, said: “The market has been red hot for several months and we’ve had a consistent trend of rising prices and ever lower voids.
“As we head towards winter, we would expect to see a cooling of activity and so it’s no surprise that the streak of ever rising prices is beginning to dissipate.”
He added: “However, it’s vital to remember that, in year-on-year terms, prices are much higher than in 2021 and voids are lower.
“In this context, it’s clear that the market remains very busy and pressure on available stock will continue whatever the weather.”
Previous ArticleThe Property Ombudsman enquiries rocket by 48%
12:21 PM, 2nd November 2022, About 7 months ago
"The findings from Goodlord show that average rental costs in England dropped by 11% during October"
I think the email headline needs an edit, COSTS are going through the roof,
12:22 PM, 5th November 2022, About 7 months ago
Can journalists learn about inflation please? There is 10% inflation so that means money loses value. So you write "on top of the decline, there is 10% inflation meaning in real terms things are even worse". Take your calculator then get an even bigger number for your headline. Journalists and politicians need a course on what inflation means.