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Rents in London fell for the first time since 2009 in April

Rents in London have recorded their first annual drop for eight years, according to the latest HomeLet Rental Index.

In April, the average rent in the capital was £1,519, £18 lower than a year earlier, and the first annual decrease since 2009, placing downward pressure on rental price inflation across the UK, which dropped to its lowest level for seven years.

Rents in the South East of England have also declined, by an average of 0.4%, but in other parts of the UK they are still rising.

UK rents in April were just 0.4% higher than a year ago, with the average monthly rent now standing at £904; this is the lowest rental price inflation figure since February 2010, HomeLet said.

According to the latest figures, areas of the country where rents are increasing more quickly are those that experienced less rapid rental price inflation during the first half of 2016, when prices in regions such as London, the South East and East Anglia increased significantly,

Wales, the North East and Scotland saw the highest levels of rental price inflation during April.

April’s rental price growth means tenants signing up to a new tenancy last month agreed to pay an average rent of £904 a month, or £754 stripping out the Greater London region.

Martin Totty, chief executive of Barbon Insurance Group, HomeLet’s parent company, commented: “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.”

Rental figures from the April 2017 HomeLet Rental Index:

Region

Average rent in April 2017

Average rent in March 2017

Average rent in April 2016

Monthly variation

Annual variation

Wales

£610

£616

£597

-0.9%

2.3%

North East

£525

£522

£514

0.6%

2.2%

Scotland

£632

£610

£618

3.6%

2.2%

Northern Ireland

£614

£614

£602

0.1%

2.0%

South West

£802

£798

£787

0.5%

1.8%

East Midlands

£604

£602

£598

0.3%

1.0%

North West

£677

£675

£671

0.4%

0.9%

Yorkshire & Humberside

£619

£619

£614

-0.1%

0.8%

East of England

£904

£902

£898

0.2%

0.7%

West Midlands

£661

£663

£658

-0.3%

0.4%

South East

£1,003

£997

£1,007

0.6%

-0.4%

Greater London

£1,519

£1,546

£1,537

-1.7%

-1.2%

UK

£904

£904

£900

-0.1%

0.4%

UK excluding Greater London

£754

£751

£748

0.4%

0.8%

Notes:

Based on new tenancies in April 2017

Based on new tenancies in March 2017

Based on new tenancies in April 2016

Comparison of average rent in April 2017 and March 2017

Comparison of average rent in April 2017 and April 2016

Rents in London fell for the first time since 2009 in April

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