The most recent report from Homelet has revealed that rents in London fell for the first time since 2009 during April. This was a direct result of rental price inflation across the UK sliding to its lowest level for more than seven years.
Capital Falls
Homelet’s report found that rents in the capital were down by 1.2% in April, in comparison to the same period in 2016. This is the first time typical rents have fallen year-on-year since December 2009.
This decline in London, alongside marginal decline across the wider South-East region, drove rental price inflation down across the country as a whole.
Rents for new tenancies in Britain during April were 0.4% greater than in the same month in 2016- the lowest figure since February 2010.
This rental price inflation means that tenants signing for a new tenancy over the last month paid an average rent of £904 per month across the UK. When the greater London region is removed from the analysis, the average rent agreed falls to £754.
Rents in London fall for first time since 2009
Inflation
In addition, the data showed that areas of the country where rents are rising more quickly are those that saw less profound rental price inflation during the first six months of 2016.
Wales for example saw rents 2.2% greater in April compared to the same month last year.
Martin Totty, Chief Executive Officer at HomeLet, observed: ‘Rents have been rising at a more modest pace across the whole of the UK in recent months, with lower levels of rental price inflation and even falling rents in areas of the country where prices were previously rising most quickly. We continue to see landlords’ and letting agents weighing tenant affordability considerations very seriously.’[1]
[1] http://www.propertyreporter.co.uk/landlords/london-rents-are-falling-down.html