England’s rental market continued to show signs of cooling in November, with average rents falling and year-on-year price growth slowing to its lowest level this year. However, industry experts are cautioning landlords and agents to prepare for dramatic changes in 2025 as new rental legislation comes into effect.
Average rents drop across England
According to the Goodlord Rental Index, the average monthly rent for a property in England fell by 3% in November, dropping from £1,238 in October to £1,205. This marks the second consecutive month of price decreases, following a sharp 12.6% drop in October compared to September.
Year-on-year growth has also decelerated significantly. In November, rents were just 3% higher than the same time in 2023, a notable decline from the 10% year-on-year increase recorded in August.
The largest regional rent growth over the last 12 months was in the North East, where prices rose by 4%, while the North West saw only a marginal increase of less than 1%. November’s most significant price drop occurred in the North West, where rents fell by nearly 6%, from £1,022 in October to £966.
The South West, which had experienced a staggering 24% decline in October, saw rents fall a further 4%, from £1,259 to £1,210.
Void periods increase as demand eases
With demand cooling into the autumn, rental void periods—how long properties remain empty between tenancies—lengthened for the second consecutive month. Average void periods increased from 19 days in October to 21 days in November, just shy of the year-high recorded in January (22 days).
The most significant increases in void periods were seen in the North East and North West, both jumping by 35%, from 17 days to 23 days.
While this extension represents a 10% month-on-month increase, Goodlord noted that the trend is consistent with seasonal patterns, as voids in November 2023 were just one day shorter (20 days) than those recorded this November.
Preparing for seismic changes in 2025
Looking ahead, the rental market faces a pivotal year as the Renters’ Rights Bill is set to become law. William Reeve, CEO of Goodlord, emphasised the importance of the upcoming changes:
“While October’s statistics were certainly more eye-catching, rents on new tenancies continued to fall in November, and year-on-year price increases have again softened. Meanwhile, the lengthening of void periods is to be expected for this time of year, as demand for properties cools after the summer scramble and in the run-up to Christmas.”
Reeve added, “While demand remains consistently high, this less frenzied period of activity will hopefully give agents a welcome breather as they get ready for a seismic 2025 – when the Renters’ Rights Bill becomes law.”
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