The lettings market saw a dip in rental prices in October, following three months of rapidly escalating prices across England.

According to the latest Goodlord Rental Index, the average rent on new tenancies dropped by 11% over the month, as the heat of July-September dissipated.

At the same time, voids lengthened by 29% – from 14 days to 18 – another signal that demand is cooling as we head into the traditionally quieter winter months.

After three months of record-breaking rental prices, October saw average rents on new tenancies return to levels last seen in May and June 2023.

The cost of a rental property in England during October was £1,189 – an 11% reduction on September’s £1,346.

However, the October figure of £1,189 is 7% higher than the average price recorded in October 2022 of £1,111.

All seven English regions monitored by the Index saw a decrease in average prices.

The biggest swing was recorded in the South West, where rents reduced from £1,493 per month to £1,190; a drop of 20%.

The South East saw the next biggest shift; with a 16% reduction. Averages decreased from £1,524 in September to £1,284 in October.

The smallest change was recorded in the North East. Prices dropped from £939 to £870; a decline of 7%.

As average rents dropped across the board, the average void period (how long it stands empty between tenancies) for a property in England lengthened in six of the seven regions monitored.

Voids were longer by 29% overall, increasing from 14 days in September to 18 days in October.

The only region to record a reduction in the average length of voids was the West Midlands, where they reduced from 22 days to 18.

There was also an increase in the average salary of renters taking on new tenancies during October. Average salaries rose from £35,386 in September to £36,135 in October – a rise of 2%.

Goodlord CEO William Reeve comments: “We’ve seen the average level of rent on new tenancies drop from September to October every year for the last four years. It’s therefore not a surprise to see rental prices dropping this month, although the rapidly escalating prices recorded over the summer could easily have had a knock-on effect later into the autumn this year.”

He adds: “The market is still under a lot of strain and demand continues to outstrip supply, but it’s encouraging to see that seasonable trends are holding strong despite these unprecedented pressures.”