Rent prices took a notable 11% downturn following the scorching summer as the market experienced a cooling phase in October. The latest report by the Goodlord Rental Index indicates a substantial drop in the average rent for new tenancies over the past month, aligning with the dissipation of the summer’s high demand. Concurrently, there’s a 29% increase in void periods, signaling a cooling demand as the market transitions into the traditionally quieter winter months.
Rental prices took an 11% plunge after a soaring summer, resulting in longer void periods as demand lessened. Meanwhile, average salaries exhibited a gradual increase. The average cost of rent remained relatively high but experienced a slight dip from July to August, with a 1.5% decrease across England, reaching an average of £1,347 per property. Despite not surpassing the record set in July, the August 2023 prices are still 10% higher compared to the same period last year and 15% above the year-to-date average for 2023.
The surge in prices during the summer, often influenced by student lets, compounded with existing market pressures, resulted in record-breaking highs. These figures were shared with landlords through the free newsletter templates.
Notably, Greater London and the South East experienced significant price rises. In contrast, the North West witnessed a 20% decline in average prices, aligning with a similar pattern observed in 2022, with a notable spike in July followed by a more subdued August.
The North East and the South West also observed drops of 6% and 10%, respectively, after substantial increases in rental costs during July.
Void periods experienced a marginal increase after the heightened activity in July, with the average periods rising from 9 to 13 days in August. However, this still marks August as the second lowest month for voids since July 2022.
The South West showed the most significant change, with voids extending from 6 to 13 days. Similarly, the North West saw an increase from 7 to 14 days, coinciding with drops in the average cost of rent.
In areas where rental costs rose, like Greater London and the South East, there was no notable change in average void periods.
The information in this post is valid to the best of our knowledge on the date of posting. It is advised that you seek independent advice based on your individual circumstances.
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