Posted Jul 11th 2017 by Isabelle Fraser
Rents are continuing to slump for the second month in a row after peaking a year ago, according to tenant referencing agency HomeLet. The average rent fell 0.3pc in June compared to the same month a year ago, on top of the 0.3pc slide in May; the UK average rent now stands at £908 per month.
London, rents are falling at a faster rate than anywhere else in the country, down 2.6pc on the same time last year, bringing the average rent of a new tenancy to £1,524 in the capital. This is the third month in a row that rents in the capital have fallen, after having risen very quickly in the first half of last year.
London's falling rents are dragging down the rest of the country: there are falls in just five of the 12 regions of the UK. In Northern Ireland, for example, rents increased 3.5pc in the year to June.
HomeLet suggests that this could be because landlords are hesitant to charge more during the uncertain economic climate, despite demand for such properties outstripping supply. Martin Totty, HomeLet's chief executive, said: “It is now a full year since rental price inflation in the UK peaked at 4.7pc, since when we’ve seen progressively more modest rent increases and, over the past two months, falls in some areas of the country. "June’s figures are the first indication that this trend may now be beginning to flatten out, but it’s too early to say this with any certainty."