Winter dip in rents but voids still low across UK

The rental market remained relatively steady in recent weeks, according to the latest index from PropTech firm Goodlord.

Void periods have remained unchanged as tenant demand continues to come up against lack of stock. The average cost of rent, however, decreased slightly during December, which is traditionally one of the quietest periods in the lettings calendar. 

Six of the seven regions monitored by Goodlord saw a small decrease in the average cost of rent during December. On average, the cost of a property dropped slightly; going from £1,087 in November to £1,071 in December, a reduction of 1.47 per cent.

The biggest drop was seen in the South West where a 2.68 per cent reduction in the cost of rent was recorded; prices dropped from £1,095 to £1,066. The smallest changes were recorded in the North West and the West Midlands, where rents moved downwards by less than one per cent respectively. 

The only region to see an increase in the average cost of rent was the North East, which saw a 1.36 per cent rise, with prices moving up from £789 to £800.

Average rental costs are now at their lowest since June 2022. However, last year ended with average rents up by 8.7 per cent across England, compared to 2021. 

The highest rental prices averages throughout 2022 were found in Greater London (£1,796) and the lowest in the North East (£810), the same regional split as recorded in 2021.

Meanwhile the average void period for a rental in England remained at 20 days during December, with no month on month change in comparison to November.

The most significant shift in void periods was observed in the South West, which saw a 8.7 per cent decrease in voids. This was followed by the East Midlands, which experienced a drop of 8.0 per cent. 

In contrast, Greater London saw the highest percentage increase in voids last month, rising from 12 days to 13 days.

Tom Mundy, Goodlord’s chief operating officer, says: “The pace of lettings held steady in December overall, despite festive breaks and snow-induced slow downs. This is testament to the strength of the market and ongoing demand from tenants. We always expect to see a dip in activity and a drop in rental averages during November and December, so the steadiness of voids and the very marginal shift in rental costs this month mean we’re likely to see a very brisk pace across the lettings market in the early months of 2023.”