London rents are falling for the first time since the financial crisis

Helen Cahill
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House Prices Hit New High In The UK
The average rent in London is still far above the national average (Source: Getty)

Rents are falling in London for the first time since the financial crisis.

According to data from HomeLet, rents fell by 1.2 per cent in April year-on-year, down to an average of £1,519 per month.

Rents have been falling most dramatically in Islington and Haringey, where the average rent has fallen by 7.8 per cent year-on-year to £1,452 per month.

Read more: House prices have gone off track along the Southen Rail route

In Croydon, rents have also slumped, down by 7.6 per cent. The average rent in April was £1,036 per month for new tenancy agreements.

Across the UK as a whole, rents increased 0.4 per cent, the lowest inflation since February 2010. Rental inflation was still relatively strong across Wales and the North East, where rents rose by 2.3 per cent and 2.2 per cent respectively.

London was not the only region analysed that recorded a drop in rents. In the South East, rents fell by 0.4 per cent year-on-year. New tenants in April paid an average of £1,003 per month.

Martin Totty, chief executive of HomeLet, said: "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.

Read more: Annual house price growth is at its slowest rate in nearly four years

"We continue to see landlords' and letting agents weighing tenant affordability considerations very seriously."

Falling rents in the capital come after a year of increased regulation for the sector. In April last year, the government increased stamp duty on second hand homes by three per cent, cooling off investment in the buy to let sector. Then, letting agents fees were banned, a change designed to protect renters from extortionate administration fees. Chancellor Philip Hammond said landlords should be the ones paying the lettings agents fees.

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