London rents fall for the first time since 2010

 
Oscar Lopez
London's Economic Boom Continues
London rents have fallen for the first time in eight years. (Source: Getty)

Rents in London have fallen for the first time in nearly eight years, according to the latest rental price index from the Office for National Statistics (ONS).

Rents in the capital fell by 0.2 per cent in the year to May, the first time London private rental prices have fallen over the year since September 2010.

Read more: London rent growth falls for 17 months straight

Across the UK, ONS figures showed that rental prices paid by tenants in rose by one per cent in the 12 months to May 2018, remaining unchanged from April 2018.

In England, private rental prices grew by one per cent, while Wales saw growth of 1.2 per cent and Scotland saw rental prices increase by 0.6 per cent in the 12 months to May 2018.

Read more: Number of private landlords leaving UK rental market soars

Alan Collett, fund manager at Hearthstone Investments said: “The ONS rental index shows that the private rental sector remains resilient, outside of London, with the UK continuing to experience a shortage of housing, fuelling demand for rental properties.

"At Hearthstone, we recently let four newly built houses in Nottingham for rents 3.5 per cent higher than expected, reflecting demand for good quality modern housing in the private rental sector.”

Regionally, Wales saw the biggest increase at 1.2 per cent in May 2018, slightly higher than the annual rate of change for England (one per cent) and double the increase seen in Scotland (0.6 per cent).

The largest annual rental price increase in the UK was in the east midlands, where rents were up 2.9 per cent. This was followed by the south west, up two per cent, and the east of England, where rents were up two per cent in the year to May.

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