Rents drop by 11% as summer heat finally leaves market

rents grow

The lettings market saw a post-summer dip in the price of rents in October, Goodlord’s Rental Index has revealed.

Rents dropped by 11% to average at £1,190 last month, while this followed three months of rapidly escalating prices across England.

At the same time, voids lengthened by 29% – from 14 days to 18 – another signal that demand is cooling.

William Reeve, chief executive of Goodlord, said: “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.”

Despite the monthly fall, the average price of rent in October 2023 is still 7% higher than the average recorded in October 2022, at £1,189 compared to £1,111.

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 from £1,493 per month to £1,190; a drop of 20%.

The South East saw the next biggest shift; with a 16% reduction.

The smallest change was recorded in the North East. Prices dropped from £939 to £870; a decline of 7.4%.