Rents coninuing to break records in London and the South East

Despite rental prices remaining steady throughout September for most of England, once again the capital and South East bucked the trend with more record-breaking rises.

Related topics:  Finance,  Landlords,  tenants,  rent
Property | Reporter
5th October 2023
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"“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"
- William Reeve - Goodlord

The latest Goodlord Rental Index has shown that strong demand for rental properties kept rents at nearly 8% higher than prices seen at the same time last year. Despite average rental costs for England as a whole staying at very similar levels to August, London and the South East of England experienced a record-breaking month for rental prices.

London & South East record highest ever rental prices

The average cost of rent in September barely moved from the August average - coming in at £1,346.28 per property during September. This is just 91p lower than the August average of £1,347.37.

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

Renters in London are now paying £2,275 per property - an increase of 6% month-on-month and the first time the Index has recorded an average cost above the £2,200 threshold for the capital.

It was a similar story in the South East, where rental costs breached the £1,500 barrier for the first time. Rents in the region are now £1,524 on average - a 2% rise on August figures.

The North West and the West Midlands also saw marginal rises of 1% in the cost of the rent.

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 8% higher than the same time last year.

Minimal movement for average void periods

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

Average void periods in England increased by 1 day during September; lengthening from 13 days in August to a new average of 14 days.

Unsurprisingly, Greater London - which saw the biggest increase in rental costs - also saw the biggest decrease in voids. Voids were down by 9% in the capital, from 11 days to 10.

The North East retains the title for the shortest void periods, one it has held for 3 months in a row. Voids in the region are currently 9 days.

The longest void periods have been recorded in the West Midlands, a title it also holds for the third month in a row, at 22 days.

Average salaries take a dip

The data also shows that tenants moving in September have slightly lower salaries. The average salary of a tenant in England dropped from £37,037 in August to £35,386 - a reduction of 4.5%.

William Reeve, CEO 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.”

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