Rents fall in Capital for first time in six years

August 27, 2016 by Brendan O'Neill

Renting

The cost of renting in London has fallen in July this year, making it slightly cheaper compared to 2015.

Rents are £7 lower than they were in July 2015, marking a slowdown in price increases. The rest of the UK’s rents are still increasing, although the rise has slowed down significantly.

According to an index released by Countrywide, a lettings network, the average rent for a new let is now £1,280. The last time the cost of rents fell was in November 2010, when people renting in London would pay an average of £923 a month.

The cost of rent across the UK continued to rise, but the increase had slowed to 1.5%, with the average rent increasing to £951. Prior to April this year, landlords were rushing to buy properties before the new stamp duty rates were introduced. As many of those new properties may now be on the rental market, pressure has eased and tenants have greater choice of properties.

The report also indicated that there were fewer properties secured at a rent above the asking amount, with 7% in July this year compared with 16% in July last year. In London, the difference was much larger, with 32% of homes being secured for a higher rent last year, in comparison to 11% this year. However, the report also revealed that it is likely that the number of people renting may increase.

People considering buying a home rather than renting may want to seek advice from a mortgage adviser, who has gained the required knowledge through CeMAP training.