Weaker demand from tenants has resulted in rental price falls in parts of the capital, as some landlords are being forced to reduce rents in order to attract new renters.
With significantly more properties to choose from, tenants are firmly in control when it comes to the private rented market in outer London, as reflected by a drop in rents in many parts of the city over the past year.
Some 16% of private landlords in outer London have reduced rents over the last 12 months, according to a new study by the National Landlords Association (NLA).
The research also reveals that the proportion of landlords raising rents in outer London is the second lowest in the UK after the North East, despite the fact that almost a quarter - 23% - of landlords across the capital have been able to increase the amount they charge to tenants.
The South West had the highest proportion of landlords who were able to increase their rents, at 42%.
Richard Lambert, CEO of the NLA, said: “These findings do not mean London is suddenly going to become more affordable for renters, but it seems to confirm that the trend of a softening of tenant demand in the capital is well-established.
“Both landlords and tenants are continuing to look outside of the capital to other centres and areas commutable to London which, if anything, will only serve to push up prices in those regions.”
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