London rents fell for the first time since 2009 during April, down by 1.2 per cent on the same period this time last year.
Data from the latest HomeLet rental index found that London rents on new tenancies were experiencing decline, whilst average UK rents remained largely stable, just 0.4 per cent higher than a year earlier. This marks the lowest rental price inflation figure since February 2010.
London’s negative growth, coupled with wider decline across the South East pushed rental price inflation down across the country as a whole. However, despite this, the South East was the region which demonstrated the strongest monthly growth at 0.6 per cent.
The rental price inflation in April means tenants signing up to a new tenancy last month agreed to pay an average rent of £904 a month, or £754 when discounting Greater London region. Inside the capital, the average rent now stands at £1,519.
However, in other areas of the country, rents are rising more swiftly. Areas that experienced less rapid rental price inflation during the first half of 2016 are currently performing well. In Wales, for example, rents were up 2.2 per cent in April in comparison to the the same time last year.
Wales, the North-East of England and Scotland were the regions which saw the highest levels of rental price inflation during April.
HomeLet’s Chief Executive Officer, Martin Totty said: ‘Rents have been rising at a more modest pace across the whole of the UK in recent months, with lower levels of rental price inflation and even falling rents in areas of the country where prices were previously rising most quickly. We continue to see landlords’ and letting agents weighing tenant affordability considerations very seriously.’