October rents down by over 12%: Goodlord – Mortgage Strategy

The rental market in England cooled in October, with monthly rents down by over 12% and year-on-year increases narrowing to an annual low, the Goodlord Rental Index reveals.

On a monthly basis, prices fell from £1,417 in September to £1,238 in October, a decrease of 12.6%.

The notable decrease follows the period between July and September where escalating rents surpassed the £1,400 barrier for three consecutive months.

The biggest decrease in rents during October came in the South West, where prices dropped by 24%. This was followed by rent reductions of 16% in the South East and 11% in Greater London.

On a yearly basis, October saw rents rise by 4% compared to the same time last year.

This month, the average rent for a property in England was £1,238 compared to £1,190 in October 2023.

In Greater London, the year-on-year increase in rents was just 2% in October while the highest was recorded in the West Midlands, where year-on-year rents rose by nearly 6%.

Meanwhile, average void periods lengthened from 15 days in September to 19 days in October, an increase of 27%.

Voids last hit 19 days in April 2024 before shortening to their year-to-date low of 11 days in July.

In October 2023, void periods were 18 days, meaning there has been negligible year-on-year change for voids.

Elsewhere data shows that the average salary of renters signing tenancies in October rose by 1.7%, from £37,350 to £37,997. On a yearly basis, this means salaries have risen by 5.15%.

Goodlord chief executive officer William Reeve says: “If you read between the lines of last month’s figures, there were signs that a market softening was coming down the track – the latest Index bears this theory out. October tenancies brought decreased rents and a squeezing of the year-on-year rises, while salary figures were up modestly.”

“These numbers will be welcomed by tenants, who were being pushed to the very edges of their affordability limits over the summer. At the same time, this data indicates that we are ushering in a more manageable period for landlords and agents. They have been working extremely hard to keep pace with market demand, whilst also grappling with a huge raft of regulatory changes coming down the track.”