England’s rental market remained buoyant in August, although rental costs and void averages took a month off from their record-breaking streak.
Voids were up across the country after July’s historic lows, and the cost of rent dipped slightly during the same period.
The cost of rent is up 12% year-on-year, despite mixed August for regions, with the average cost of rent across England falling by 1% compared with a month earlier, taking prices down to a national average of £1,227.54. This followed a rent average in July which was the highest ever recorded by the Index.
Average prices were down in the North East, South West, and the North West last month, where the biggest drop was recorded.
Rental costs in the North West region dipped from £1,213 to £982 – a 19% decline. Despite the steep decline in the region, such a drop was predicted following a record-breaking July for the North West, when costs were driven up by a surge in high-value student lets being processed.
Other regions saw prices continue to climb. The South East saw the biggest rise: with rents increasing from £1,229 to £1,385, a rise of 12%. Greater London also recorded a jump: up from £1,797 in July to £1,924 in August, a rise of 7%.
|
Region |
July 2022 |
August 2022 |
Month-on-month % change Previous Month |
Year on Year % change |
|
East Midlands |
£982.77 |
£1,019 |
3.71% |
7.64% |
|
Greater London |
£1,797.78 |
£1,924 |
7.05% |
11.51% |
|
North East |
£1,021.54 |
£954 |
-6.58% |
17.85% |
|
North West |
£1,213.89 |
£982 |
-19.11% |
21.66% |
|
South East |
£1,229.81 |
£1,385 |
12.65% |
7.07% |
|
South West |
£1,539.61 |
£1,402 |
-8.91% |
10.08% |
|
West Midlands |
£886.57 |
£925 |
4.32% |
12.21% |
|
England average |
£1,238.85 |
£1,227.54 |
-0.91% |
11.86% |
After July saw the Index’s lowest-ever void rates, August recorded a more predictable pace for the market, with the void average rising from July’s historic low of 10 days to 14 days this month. However, this average is 6.6% lower than void periods seen at the same time in 2021.
The biggest shift this month was seen in the South West, where voids took a big jump from 5 days to 14 days on average. The North West also saw a big increase: up from 7 days to 17 days.
The only region to hold steady was Greater London, where voids remained at 11 days. Void averages in the capital are now 15% lower year on year, when compared to 2021.
|
July 2022 |
August 2022 |
Month-on-Month % change |
|
|
East Midlands |
14 |
16 |
14.3% |
|
Greater London |
11 |
11 |
0.0% |
|
North East |
6 |
11 |
83.3% |
|
North West |
7 |
17 |
142.9% |
|
South East |
10 |
12 |
20.0% |
|
South West |
5 |
14 |
180.0% |
|
West Midlands |
17 |
20 |
17.6% |
|
England average |
10 |
14 |
40.0% |
The data also shows that average tenant salaries rose by 0.8% this month, increasing from £29,637 in July to £29,883 in August.
The age of tenants dipped slightly, taking the average down to 32. The last time the average age was this low was August 2021, reflecting the number of student renters signing tenancies in the summer months.
Tom Mundy, COO of Goodlord, commented: “It’s been another hectic month for the market. Following a record-breaking July, this month’s metrics are slightly more measured, but continue to set new year-on-year benchmarks. Properties are in high demand, with fewer homes on the market than the number of tenants looking to rent them.
“As landlords and agents gear up for what could be a tricky winter – with a raft of new legislation coming down the track and a period of economic uncertainty for tenants as rising rents meet escalating energy bills – the lettings market shows no immediate signs of slowing down.”