Voids inch up as rental market appears near to peak

The latest rental index from PropTech platform Goodlord shows voids inching up - although still remaining much lower than the long-term average. 

After five months of diminishing void averages across England, September brought an end to this trend. 

There were increases in void periods in all regions monitored, with the exception of Greater London. However, the average void period across England is still only 17 days - lower than the averages recorded between January and May of this year. 

Overall, void periods remain 10.5 per cent lower year on year.

The biggest jumps were seen in the North East and the North West. The North East recorded a 37.5 per cent increase in the average void period, moving from eight days in August to 11 days in September. Despite this, the region continues to have the lowest void periods overall - a title it has held for three consecutive months. 

The North West saw voids increase by 38 per cent, taking averages from 18 days to 25 days. This makes it the region with the highest overall void periods. 

Greater London saw void periods reduce from 13 days to 12, the only reduction recorded. 

On the rents front, despite several regions recording a decrease during September, the average cost of rent for England as a whole hit £1,104 - a year-to-date high for 2021. Overall, rents are now 6.94 per cent higher than they were in September 2020. 

The North West saw a significant increase in the average cost of a rental property, with prices rising by 11 per cent - from £807 to £901. London also recorded a 2.5 per cent increase, taking the cost of a rental property in London from £1,725 to £1,770. The West Midlands recorded a 1.5 per cent rise. 

However, the East Midlands, North East, South East and South West all recorded decreases in the cost of rent, ranging from one to five per cent. 

Tom Mundy, chief operating officer at Goodlord, comments: “The year on year trends for the rental market are hugely encouraging. The void and rental averages in September 2021 compared to last year show just how strongly the market has rebounded. 

“Rents are currently very high, on average, and void statistics continue to be lower than we’d expect, which sets the market in very good stead ahead of the winter months.”