Newly released data by flatshare website SpareRoom reveals average rental prices in Greater London have seen a drop.
Average rental prices in February 2024 fell from £1,024 to £1,009 for the first time since July 2023.
This could be explained due to supply and demand levels stabilising with more rooms available on the market and fewer potential renters on the look for a place to live in Greater London.
At the height of rent rises, SpareRoom data suggested that in late 2022 as many as nine renters were competing for a room in the capital with new findings indicating that number has dropped to four renters for every available room on the market.
SpareRoom says rents in July last year were averaging at £995 and rose to £1,024 in January - then fell to £1,009 last month.
Matt Hutchinson, Director of Communication for SpareRoom comments: “Since the summer of 2022, London rents have rocketed as post-pandemic demand soared and supply failed to keep up.
“However, the number of people looking per room available is falling, which means that rents, although still ridiculously high, have started to follow suit. Average London rents in February saw the biggest drop in a single month since the start of the pandemic.
"It's probably wishful thinking to presume rents will fall as fast as they rose, that never seems to happen. However, this could be an early sign that the market is rebalancing, after the most turbulent period we've seen in the 20 years we've been running SpareRoom.”
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I can see London rents coming down, but in Manchester 😱😱🆘🆘 they are only going one way…….. Space X 🚀 style.
Same in Preston, only way is up..! Especially now and every year for mine.
Greater London maybe, but the rest of the UK? doubtful
My rents will continue to go up or I will continue to sell up. Simple!
Agreed it's either rents up or sell up, simple as
Why do these self-appointed “experts” present everything that happens in London as if it is representative of the whole country. It isn’t.
I’m more interested in long term steady cash flow thx
Prior to any decline in rental rates, we must see corresponding decreases in interest rates to align with market adjustments.
Failing this, landlords may encounter challenges in remortgaging, especially if rental income falls below mortgage criteria thresholds.
This predicament could ultimately force landlords to consider selling their properties. With a limited supply of rental housing stock, such actions could inevitably lead to upward pressure on rental prices once again.
Annoyed LL- totally agree. Inside the the M25 it’s another world to itself.
Trigger, you are right it is another world inside M.25 its a prison locked-in no exit plan allowed. Why not scrap Capital Gains Tax for long term landlords, it should be reducing each year until eventually reaches zero. What happens now the tax penalty increases the longer you hold it instead of reducing therefore locked-in and the torture continues and now licensing Schemes invented to prevent us from operating, like cannot let without a licence but it takes them over a year to deal with your application after submitting I have some 14 months and the property vacant. The Council are not capable of running the Schemes it subbed out to Computer giant website.
It’s no use the Chancellor sticking out his chest as if doing us a big favour by reducing c/gains 4% when they added on 10% increasing to 28% before that’s 10% more than any other Business.
Scrap c/gains tax for long term landlords and release their proper Housing Stock for people that want to buy them many with gardens & garages not stupid over priced Lego boxes in the Sky a kin to Council Housing Estates.
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