02 Aug 2022

Rents hit record high and voids hit record low - here’s why…

Voids hit what has been described as an historic low in recent weeks, according to PropTech firm Goodlord.

It says the average void period in England as a whole dropped by 41 per cent in July – moving from 17 days to just 10 days on average. Every region monitored saw a significant reduction in voids. 

This was driven by a surge in demand for student lets, with the North West and the South West seeing the biggest proportional fall in voids. The lowest voids in England can now be found in the South West, at just five days. 

The highest voids, at 17 days, are in the West Midlands. However, this is still down from 24 days in June, a drop of almost a third.

At the same time average rental prices in England have risen by a huge 17.96 per cent during July, taking the typical cost up from £1,050 in June to £1,238. 

This is the highest average ever recorded by Goodlord, and again the PropTech supplier says it’s all down to students.

Every region monitored saw an increase in the cost of rent.  The highest rise was seen in the North West, where prices jumped by a staggering 44 per cent. Students renting in the region, which is home to a huge range of universities including Manchester and Liverpool, are behind the surge. Average costs in the North West are now £1,213, up from £838. 

The next biggest jump was recorded in the South West – home to universities including Bristol, Bath and Exeter – with price averages increasing by 36 per cent. This takes the average cost of a rental property in the region up from £1,130 to £1,539. 

Despite still being the most expensive place to rent in England, Greater London saw the least movement in average costs during July. A small 3% rise was recorded, taking the average price up to £1,797 per property.

Goodlord also measures average income for tenants, and this rose very slightly during July – up by one per cent to £29,637 per tenant (compared to £29,275 in June). 

Tom Mundy, chief operating officer at Goodlord, comments: Driven by a surge in high-value student lets, it’s been a staggering month for the market. The heatwave failed to cool demand and instead we’ve been seeing record high rents and record low voids. The lettings market is incredibly busy and demand shows no signs of abating this summer. Agents are working hard to ensure good quality homes stay in the rental market and tenant demand is met.”

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