Rents in London and the UK continue to fall as landlords reluctant to increase prices

 
Shruti Tripathi Chopra
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House Prices Widen The North-South Divide
In May rents across the UK fell 0.3 per cent (Source: Getty)

Rents in London fell by 2.6 per cent last month compared to June 2016, HomeLet's rental index published today has showed.

Rents in the capital have fallen on an annual basis for three months in a row with the average monthly rent in London now standing at £1,524.

Homelet's analysis showed that landlords are "reluctant to charge higher rents in the current uncertain economic climate".

"While demand for private rental property remains high relative to supply, landlords continue to be conscious of affordability issues for tenants," it said.

Read more: Here's why rents near Nine Elms are falling

​Nationally, UK rental prices fell by 0.3 per cent compared to the same period last year. This was the second successive month in which rents showed a decline. The average rent agreed on a new tenancy during June was £908, down from £910 in the same month of 2016.

In May rents across the UK fell 0.3 per cent in the first annual fall in rents recorded since December 2009.

HomeLet’s chief executive officer Martin Totty said: “It is now a full year since rental price inflation in the UK peaked at 4.7 per cent, since when we’ve seen progressively more modest rent increases and, over the past two months, falls in some areas of the country; June’s figures are the first indication that this trend may now be beginning to flatten out, but it’s too early to say this with any certainty."

Rental figures from the June 2017 HomeLet Rental Index

Region

Jun-17

May-17

Jun-16

Monthly Variance

Annual Variance

Northern Ireland

£610

£609

£589

0.3 per cent

3.5 per cent

East Midlands

£614

£614

£597

-0.1 per cent

2.8 per cent

Wales

£608

£605

£592

0.4 per cent

2.5 per cent

North West

£688

£679

£674

1.4 per cent

2 per cent

Scotland

£636

£622

£624

2.3 per cent

1.9 per cent

South West

£800

£803

£797

-0.4 per cent

0.4 per cent

West Midlands

£662

£658

£661

0.7 per cent

0.2 per cent

East of England

£906

£909

£907

-0.4 per cent

-0.1 per cent

South East

£1,015

£998

£1,017

1.7 per cent

-0.2 per cent

Yorkshire & Humberside

£615

£614

£621

0.2 per cent

-0.9 per cent

Greater London

£1,524

£1,502

£1,564

1.5 per cent

-2.6 per cent

North East

£525

£522

£541

0.6 per cent

-3.1 per cent

UK excluding Greater London

£908

£901

£910

0.7 per cent

-0.3 per cent

UK excluding Greater London

£757

£753

£753

0.5 per cent

0.5 per cent

Read more: Revealed: The top 10 best and worst buy-to-let postcodes in the UK

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