June sees average rents drop 6% in South East

Newly released data from lettings platform, Goodlord, has revealed that average rents have risen across four regions in June, with the monthly rental average rising by almost 6% in both Wales and the South West.

Related topics:  Landlords
Warren Lewis
5th July 2019
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It was a different picture in the South East, with average rental costs dropping from £1,044 to £980 - a 6.1% decrease. Price drops were also recorded the East Midlands and West Midlands, along with a 1.3% drop in Greater London.

The monthly rental average for the whole of the UK stood at £907 in June. This is up from the year to date low of £887 (February 2019), but below the £917 national average we saw in January 2019.

Affordability

The Capital continues to have the highest monthly rents, with an average of £1,621 in June, and an average affordability ratio of 3.3, making it the least affordable region in the country for renters.

Affordability is a tenant’s financial capacity to afford rent. Goodlord defines affordability as a tenant’s guaranteed yearly income divided by their yearly rent share, with 2.5 considered the minimum affordable ratio.

An analysis of tenancies processed through Goodlord’s platform in June found that the North East and West Midlands were the most affordable regions for renters, with the affordability ratio for both standing at 4.1. Average monthly rents in the North East were £657 (a 3.6% increase since May) and £719 in the West Midlands (dropping by a fractional 0.1% month on month).

Void Periods

Meanwhile, the South West and Wales had the lowest average void periods in June at just 9 days for both regions. The highest void periods were in the East Midlands, where it took an average of 25 days to fill an empty property last month.

Tom Mundy, COO and co-founder of Goodlord, commented: “It’s been another interesting month across the UK. We continue to see a range of market factors affecting average rental prices. Whilst London prices are holding fairly steady, we’ve seen a big drop across the South East as a whole. This contrasts sharply with a steady rise in rents for the South West and Wales. As we move into the summer - typically the busiest season for lettings - it will be interesting to see what the impact of student housing churn and the repercussions of the Tenant Fee Ban have on rental costs and void periods.”

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