Pressure from High Demand As Intense As Ever

Rent levels and voids held steady over the past month with strong demand keeping annual price growth at nearly eight per cent.

The latest Goodlord Rental Index shows that despite average rental costs for England staying at similar levels to August, London and the South East of England experienced a record-breaking month.

The average rent in September barely moved from August coming in at £1,346.28 per property.

However, it was a different picture in Greater London and the South East, with both regions seeing new rent records in September.

Renters in the capital now pay £2,275 per property – an increase of six per cent month-on-month and the first time the Index has recorded an average above £2,200.

It was a similar story in the South East, where rental costs breached the £1,500 barrier - rents are now £1,524 after a two per cent rise on August figures.

In contrast, there were reductions in average costs for renters in the East Midlands, North East, and South West.

Overall, the cost of rent is now eight per cent higher than the same time last year.

As rental prices held up in the face of demand, voids also saw minimal movement.

Average void periods in England increased from 13 days in August to a new average of 14 days in September.

Unsurprisingly, Greater London – which saw the biggest increase in rental costs – also saw the biggest decrease in voids. Voids were down, from 11 days to 10.

The North East boasts the shortest void periods of nine days.

The longest void periods have been recorded in the West Midlands, at 22 days.

William Reeve, chief executive of Goodlord, comments: “Whilst this September didn’t bring the nationwide bump in rental prices we saw last year, records were smashed across London and the South East – with rental costs there now significantly higher than their 2022 and early 2023 levels.

“The onset of autumn typically brings a period of stability when it comes to prices, but with pressures on the market more intense than ever, we doubt September represents an end to the cycle of price setting which we’ve seen over recent months.”