London rents fall for first time in six years
Published: 01/09/2016According to research by Countrywide, rents in London have fallen annually for the first time in nearly six years. With average monthly rents at an eye-watering £1280, this adjustment has resulted prices for new lets dropping by an average of £7 per month, in comparison to the same time a year ago. The last time rents fell in the capital was in November 2010, when the average monthly rent in London was a comparatively cheap £923 per month.
The housing market earlier this year saw a number of landlords rushing to push through their purchases as a result of the 3% stamp duty hike levied on buy-to-let properties, which came into force on April 1st. The majority of these properties are likely now on the rental market, which improves the choice for tenants and should result in further depression of London rents, particularly in Prime areas where transactions are comparatively low.
Last year in July in the whole of the UK, 16% of tenants paid over the asking rent to secure a tenancy on a home compared to 7% in July 2016. The falling rental figures were much more significant in London in comparison, with only 11% of homes letting for more than the asking price in July 2016, a drop from 32% in July 2015.
At City Living London we have always sought to price our properties competitively with a view to finding long term, happy tenants. Our average monthly rental is below the London average, at £1147.50, and our tenant fees are similarly competitive at £270.00. If you move again through us, these fees are discounted by 50%, meaning our fees for return tenants are some of the most affordable in London.
Although rental price growth has slowed, current market dynamics are likely to accelerate the growth of renting, suggests Countrywide. With more stock and higher levels of demand, the increasing number of rented households looks set to continue to increase in 2016.