11:50 AM, 2nd August 2022, About A year ago
We didn’t just see record-breaking temperatures in July, there was also a surge in high-value student lets to help average rental costs and void periods to break records, according to Goodlord’s latest rental index.
The figures show that the lettings market continues to gather steam and, thanks to a higher-than-average demand for student lets, average rental prices in England rocketed by 17.96% during July.
This took the average rent cost up from £1,050 in June to £1,238.
This is the highest average ever recorded by Goodlord’s index – and every region saw an increase in the cost of rent. The findings back up a report from DPS last week that also highlighted record rent rises.
Goodlord’s Tom Mundy said: “Driven by a surge in high-value student lets, it’s been a staggering month for the market.
“The heatwave failed to cool demand and instead we’ve been seeing record high rents and record low voids.”
He added: “The lettings market is incredibly busy, and demand shows no signs of abating this summer.
“Agents are working hard to ensure good quality homes stay in the rental market and tenant demand is met.”
The highest rise was seen in the North West, where prices jumped by a staggering 44% with the average costs now £1,213, up from £838.
Students renting in the region, which is home to a range of universities including Manchester and Liverpool, are behind the surge.
The next biggest jump was recorded in the South West – home to universities including Bristol, Bath and Exeter – with price averages increasing by 36%.
This takes the average cost of a rental property in the region up from £1,130 to £1,539.
And, despite still being the most expensive place to rent in England, Greater London saw the least movement in average costs during July.
A small 3% rise was recorded, taking the average price up to £1,797 per property.
As well as the highest ever rental price averages, July also saw the index’s lowest ever void rates.
The average void period in England dropped by 41% in July – moving from 17 days to just 10 days on average.
Every region monitored saw a significant reduction in voids.
Again, this was driven by a surge in demand for student lets, with the North West and the South West seeing the biggest proportional fall in voids.
The lowest voids in England can now be found in the South West, at just five days.
The highest voids, at 17 days, are in the West Midlands, though this is still down from 24 days in June, a drop of 29%.
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