In a significant turnaround for the property rental market, England witnessed an 11% decrease in rental prices during October, marking a post-summer correction following several months of surging costs, as revealed in the latest Goodlord Rental Index.
The month of October saw the average rents on new tenancies retreat to levels last observed in May and June of the same year. The cost of renting in England in October stood at an average of £1,189, down from September’s figure of £1,346.
While this decline was substantial, it’s essential to note that the October 2023 rental price was still 7% higher than the October 2022 average, which was £1,111.
Every one of the seven English regions monitored by the Goodlord Rental Index experienced a decrease in average rental prices. The South West recorded the most significant shift, with rents dropping from £1,493 per month to £1,190, representing a substantial 20% reduction. The South East wasn’t far behind, witnessing a 16% drop from £1,524 in September to £1,284 in October.
In contrast, the North East saw the smallest change in prices, with a 7% decrease from £939 to £870.
Moreover, the Goodlord Rental Index also identified a lengthening of the average void period for properties in England across six of the seven regions monitored. The overall void period increased by 29%, rising from 14 days in September to 18 days in October. The most significant increase occurred in the North East, where void periods surged by 88%, jumping from nine days to 17. The South East saw a 50% increase, with void periods extending from 12 to 18 days on average. The West Midlands was the only region where void periods reduced, decreasing from 22 days to 18.
The data also unveiled an increase in the average salary of renters signing new tenancies in October. Average salaries rose from £35,386 in September to £36,135 in October, marking a 2% increase.
Commenting on these findings, William Reeve, CEO of Goodlord, noted that the decline in rental prices during October follows a consistent trend observed over the past four years. He added, “The market remains under considerable stress, with demand continuing to outstrip supply. Nevertheless, it’s encouraging to see that seasonal trends are holding strong despite these unprecedented pressures. The rapid price increases recorded over the summer might have contributed to the correction seen later in the autumn this year.”