England’s rental market cooled further in November, with average rents down 3% during the month and the pace of year-on-year increases falling to a new annual low.
According to the Goodlord Rental Index, the average monthly price for a rental property in England dropped to £1,205 in November, a £33 decrease from last month’s £1,238. Void periods lengthened, as the market cools off after a summer of intensely high demand.
Year-on–year rent rises reach annual low
Whilst October saw year-on-year rent increases reach 4% - the lowest recorded in the year to date - that figure fell even further in November, with average rents rising by just 3% when compared to the same time in 2023.
In contrast, rents in August were tracking 10% higher year-on-year compared to 2023 rents.
The average monthly cost of a rental property in England was £1,205 in November 2024, a rise of £38 compared to the £1,167 recorded in 2023.
The largest regional increase came in the North East, where rents are up 4% in the last 12 months, while the North West saw prices increase by less than 1% over the same year-on-year period.
Month-on-month rents continue to drop
Across England, new rents fell by almost 3% in November, with every region in the country recording a drop in prices for the second month on the spin. This follows a significant decrease in October - when rents were down 12.6% on September figures.
The biggest price reduction during November came in the North West, where rents were down by nearly 6% from £1,022 in October, to around £966 in November. The South West, which recorded a staggering 24% drop in rents during October, saw prices continue to fall in November, down a further 4% from £1,259 to £1,210.
Voids lengthen again as the market settles down
With demand continuing to ease through the autumn, the average time that rental properties lay empty between tenancies was again extended in November. Average void periods lengthened from 19 days in October to 21 days in November, just one day short of the year-to-date high recorded in January (22 days).
While this extension represents a 10% month-on-month increase, it is broadly consistent with the pattern usually seen at this time of year, with average voids in November 2023 being just one day shorter (20 days) than they were this November.
The biggest increase in voids during November came in the North East and North West regions, which both saw a 35% jump - from 17 days to 23 days.
Salaries dip slightly after a boost in October
While average salaries for tenants rose by almost 2% in October, this month saw a slight decrease, with new renters’ pay packets down from £37,997 to £37,688 in November - a 0.8% reduction.
This brings an end to the two-month period which saw year-on-year salary increases outstrip the rise in rents in September and October - with salaries up by just 2% from November 2023 to November 2024, compared to a 3% jump in rents.
William Reeve, CEO of Goodlord, comments: “November’s Rental Index figures are confirmation if it were needed that the market is settling down as we head into the winter months. While October’s statistics were certainly more eye-catching, rents on new tenancies continued to fall this month and year-on-year price increases have again softened.
"Meanwhile, the lengthening of void periods is to be expected for this time of year, as demand for properties cools after the summer scramble and in the run-up to Christmas.
“While demand remains consistently high, this less frenzied period of activity will hopefully give agents a welcome breather as they get ready for a seismic 2025 - when the Renters’ Rights Bill becomes law.”