Rental costs in London fall for the first time in 8 years

The cost of renting a home in London has fallen for the first time in eight years.

The average rent charged on a new tenancy in the capital dropped by 1.2% in April, the first fall since December 2009, according to landlord insurer HomeLet.

Rent rises across the whole of the UK almost stalled, edging ahead by just 0.4%, the lowest annual increase for seven years.

But despite the slowdown, the typical tenant pays £4 more a month to rent their home than they did last year at £904, falling to £754 if Greater London is stripped from the equation.

Why is this happening?

The drop in rents in London and the south east was attributed to the increased cost of letting a home in these regions last year, leading to affordability becoming increasingly stretched.

Martin Totty, chief executive of HomeLet, said rents had also recently been rising at a more modest pace across the country due to affordability constraints.

He explained: “This trend is ongoing: we continue to see landlords and letting agents weighing tenant affordability considerations very seriously.”

For the full article by Nicky Burridge, please click here

Source: Zoopla