London rent growth at two year low

London rent growth at two year low

New data from the latest HomeLet Rental Index reveals rent prices for new tenancies in Greater London are rising at the slowest rate for almost two years.

The January index data shows Greater London rent prices are 6.2% higher for the three months to January 2016 compared to the same period in 2015, this is the slowest rate of growth seen in Greater London since March 2014. By comparison, rent prices in other regions continue to rise steadily with the South East of England and the East Midlands seeing the highest rent price rises in the three months to January 2016, at 7.2% and 6.8% respectively.

In Greater London the average rent on new tenancies for the three months to January 2016 was £1,510 per month, while the average for the rest of the UK, excluding Greater London, was £740 per month. The Index data shows that while the rate of growth in rent prices in Greater London may have slowed, monthly rents on new tenancies are still more than twice the average for the rest of the UK.

This month’s Index shows eleven out of twelve regions in the UK seeing prices rise in the three months to January 2016, compared to the same period last year, with only the North West of England seeing prices dip by 3.4% from £646 per month to £624 per month.


Looking at the monthly data, rent prices have risen only marginally compared to the previous month. Rent prices in the UK, excluding Greater London, are 0.2% higher in the three months to January 2016 than in the three months to December 2015. In Greater London, rent prices have fallen by 0.9% in the three months to January 2016, compared to the previous month. Overall, six out of twelve UK regions have seen rent prices rise in the three months to January 2016 compared to last month, while six have seen prices fall.

Martin Totty, Barbon Insurance Group’s Chief Executive Officer, said: “It’s notable that there has been a further fall in the rate at which average rents in the Greater London area are rising. In recent years, the capital has seen much faster rates of increase than the rest of the country, but it may be that an affordability ceiling has now been reached in London and that rents will now track other parts of the UK more closely.

The fact that UK-wide average rents in the private rented sector continue to show sustained upwards growth reflects there is still strong demand for rental properties,  driven mainly by the impact of the long term structural imbalance in supply and demand of property.  Landlords achieving higher average rents over time also suggests that tenants starting a new tenancy are proving they can afford higher average rents – with demand outstripping supply, some would-be tenants may be able to outbid rivals for properties, which could drive higher rents.”

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Jimmy_McCoy
Jimmy_McCoy 16 Sep 2016

I think that the main reason to buy garden purchases in last minute is because people always search for the best deal. In summer months there are abundance of seasonal goods and it means more low cost

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Jimmy_McCoy
Jimmy_McCoy 16 Sep 2016

Buying a home often is more expensive than you expect. There are lots of hidden costs such as: stamp duty, surveys and valuations, mortgages etc. that can add more than 10% to the total bill

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Homebuyerconveyancing
Homebuyerconveyancing 15 Sep 2016

We are seeing a massive influx of Homebuyers using online Estate Agents. The winners are the online portals that still aim to manage the customer journey to homeownership. They provide a valuation service,...

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oliviaG 12 Sep 2016

Without a doubt renovating can truly be very beneficial to many homeowners but it depends to a great extent on the condition of your home and the parts of it you want to refresh. Before you start you should...

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oliviaG
oliviaG 29 Aug 2016

So true about cats!

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Jason Roberts
Jason Roberts 25 Aug 2016

Any predictions what average rent will be at the same time next year, anymore drops coming?

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dylanvan
dylanvan 19 Aug 2016

very good, thanks for sharing

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SecomTech
SecomTech 19 Aug 2016

Firstly, I either lodge with DPS or do not take a deposit...secondly, If a tenant has not received a confirmation their deposit is secured with either a scheme or in an insured account with an agent/landlord,...

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jasonevans
jasonevans 19 Aug 2016

Belvoir has over 15 years of experience in property lettings, buying and renting and is one of the best agencies I know about. I have heard that they revived an award for the hard work. Really amazing...

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jasonevans
jasonevans 19 Aug 2016

Usually these areas are least affected when it comes to unexpected economical collapse.

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TheWaspNestRemover
TheWaspNestRemover 11 Aug 2016

You agree to pay for the treatment needed to get rid of fleas, ants, mice, wasps nests and other pests unless you can prove that these are a result of us not meeting our repairing responsibilities or these...

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madisonwelch80
madisonwelch80 02 Aug 2016

16% is quite a raise. Let's hope this tendency won't continue for long.

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