‘Red-hot’ rental market steams in cold climate

Rents ‘broke records’ in September, the London-based lettings agency Goodlord has reported.

The month saw the highest average rental costs ever recorded by its rental Index,  hitting an average of £1,249 in England. This was 1.8 per cent up on the previous month and put the average annual increase at 13.17 per cent. 

Most regions recorded an increase in September but there was ‘a significant surge’ in London. Average costs for Londoners topped the £2,000 mark for the first time, with an average of  £2,055, 6.7 per cent jump up on the month.

Against this, the East Midlands recorded an average drop of 0.88 per cent on the month, and the North East 6.69 per cent.

With demand staying strong across the country, voids remained low although did increase from an average of 14 days to 15 days.

‘This has been another record-breaking month for the market’, said Goodlord chief executive Tom Mundy.:

‘Whilst we always expect August and September to be busy, we’re seen rents break records for the second time in one summer and London has tipped over the £2,000 average threshold. These are truly significant benchmarks and demonstrate a red-hot rental market. What happens when this reality meets what’s on track to be a difficult winter for many remains to be seen, but agents and landlords must be prepared for demand to stay high, even as individual circumstances start to shift’.