Students push rents to record highs and voids to record lows



A surge of high value student lets saw average rental costs and void periods break records during July, Goodlord’s Rental Index has revealed.

The month saw a range of high value properties being snapped up by student tenants, pushing up average rental prices in England by a huge 17.96% – the highest amount ever recorded by the index.

This took the average cost up from £1,050 in June to £1,238.

Tom Mundy, chief operating officer at Goodlord, said: “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.”

The highest rise was seen in the North West, where prices jumped by a staggering 44%. 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%. 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.

Average cost of rent

Region June 2022 July 2022 Month on month % change Previous Month
East Midlands £867.97 £982.77 13.23%
Greater London £1,745.56 £1,797.78 2.99%
North East £790.82 £1,021.54 29.17%
North West £838.08 £1,213.89 44.84%
South East £1,133.81 £1,229.81 8.47%
South West £1,130.07 £1,539.61 36.24%
West Midlands £845.37 £886.57 4.87%
England £1,050.24 £1,238.85 17.96%
Voids hit historic low

High demand led to the lowest ever void rates, moving from 17 to just 10 days on average.

Voids dropped in every region, with the North West and South West seeing the biggest proportional fall.

The highest voids, at 17 days, are in the West Midlands. However, this is still down from 24 days in June, a drop of 29%.

Average voids

Region June 2022 July 2022 Month on Month % change
East Midlands 18 14 -22.2%
Greater London 14 11 -21.4%
North East 13 6 -53.8%
North West 20 7 -65.0%
South East 15 10 -33.3%
South West 14 5 -64.3%
West Midlands 24 17 -29.2%
England average 17 10 -41.2%

 

Tenant salaries rise slightly

Average income for tenants rose very slightly during July – up by 1% to £29,637 per tenant (compared to £29,275 in June).

The biggest salary shift was seen in the East Midlands, where tenant take-home pay rose by 15%, going up from £26,797 to £30,918.

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