Rents fall and voids rise in England’s lettings market

Rents fall and voids rise in England’s lettings market

0:01 AM, 1st November 2023, About 7 months ago 14

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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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Comments

Gary

10:44 AM, 1st November 2023, About 7 months ago

I think there's something wrong with their data here.

Crouchender

11:08 AM, 1st November 2023, About 7 months ago

Pointless newstory. Rent always peaks in Sept every year.

They will peak again HIGHER next year in Sept and then we will have this repeat story again

FOLLOW THE 'MATHS'!... Lessening PRS supply in 2023 = higher tenant demand by Sept 2024.

With or without an election, a war, an oil crisis, a Labour OTT RRB!

northern landlord

14:13 PM, 1st November 2023, About 7 months ago

So, depending on your point of view the PRS market is either upbeat and buoyant with plenty of properties available at falling rents and landlords are confidently adding to their portfolios against a background of rising property prices, or the amount of properties available is dropping, rents are rising, arrears are increasing and landlords are selling against a background of diminished returns, increasing costs, falling property prices and punitive upcoming regulation changes.
Which view you opt for depends on who you are. Non-landlords like agents and lenders who are insulated from the actual reality of being a landlord but nonetheless rely on them for income tend to paint a rosy picture but are they just “whistling in the dark” while actual landlords at the sharp end especially the smaller and accidental ones tend to favour the less upbeat approach.

Michael Booth

16:45 PM, 1st November 2023, About 7 months ago

Utter rubbish, you can't have thousands oh landlords leaving the prs less accommodation and then put out that rents have reduced and voids have increased it just doent make sense.

Dickie Withers

17:23 PM, 1st November 2023, About 7 months ago

I will be putting up my rents next year and will still be below market rate for the area. Can't see how rents have come down as I only see them increasing. As for voids no idea if they are paying cheaper rents then why the voids. Sounds and smells like a bull

Tony Johnson

11:26 AM, 2nd November 2023, About 7 months ago

Monthly vicissitudes are not an indicator of the trend in average rents.
The year on year is the only meaningful figure and Rents are not falling.

Mr Reeve is not being economic with the truth and is manipulating statistics to spin lies, damn lies and an agenda.

Tony Johnson

11:28 AM, 2nd November 2023, About 7 months ago

Reply to the comment left by Michael Booth at 01/11/2023 - 16:45
Some industry participants rely on spinning an alternative truth for their own agenda.

Tony Johnson

11:30 AM, 2nd November 2023, About 7 months ago

Reply to the comment left by northern landlord at 01/11/2023 - 14:13
Depending on which yarn is more beneficial to the person spinning it.

david porter

9:42 AM, 3rd November 2023, About 7 months ago

Reading this this morning I think I can get just a whif of bovine effluent?

Wayne Hoban

8:28 AM, 4th November 2023, About 7 months ago

I'm sure Goodlord could crunch the figures a little better to explain this.
As it occurs every September to October, there must be some logical reason for this decrease. I mean, could it be hundreds of thousands of uni students returning to education and starting their tenancies in September each year? Then no student tenancies in October and returning to a normal month!

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