Goodlord reveals 11% drop in rents as summer heat finally leaves market
Goodlord boss William Reeve says average October rents on new tenancies reverted back to levels last seen in May and June 2023 at £1,189.
The lettings market saw a post-summer dip in the price of rents in October after three months of rapidly escalating prices across England, according to the latest Goodlord Rental Index.
The average rent on new tenancies dropped by 11% over the last month as the heat of the July to September months dissipated.
VOIDS LENGTHENED
At the same time, voids lengthened by 29% – from 14 days to 18 – another signal that demand is cooling as winter approaches.
The Goodlord Rental Index saw average October rents on new tenancies revert back to levels last seen in May and June 2023 with the cost of a rental property at £1,189 – an 11% reduction on September’s £1,346.
However, the average price of rent in October 2023 at £1,189 was 7% higher than the average price of £1,111 recorded the same time last year.
All seven English regions monitored by the Index saw a decrease in average prices.
The biggest swing was recorded in the South West, where rents reduced 20% from £1,493 per month to £1,190. The South East saw the next biggest shift with a 16% reduction with averages decreasing from £1,524 in September to £1,284 in October. The smallest change was recorded in the North East where prices dropped 7% from £939 to £870.
VOID PERIOD
As average rents dropped across the board, the average void period in England lengthened in six of the seven regions monitored. Voids were longer by 29% overall, increasing from 14 days in September to 18 days in October.
William Reeve (main picture), Goodlord Chief Executive, says: “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.
“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.”
