Incredibly, rent outside of London has fallen for the first time since 2011, and properties in London have even dropped. According to Rightmove, rents in Britain dropped in the final summer months of the year for the very first time in 5 years.
The First Fall Recorded At This Time Of Year
The national asking rents outside of London fell by 0.2% in the 3 months leading up to September, even though this is one of the busiest times for people to begin looking for a new home. Since Rightmove started tracking rents in 2011, it was the first fall recorded at this time of year.
Landlords are slowly turning away from the overpriced London property market, and are instead flooding the South East of England with new rental properties to consider. This has distorted the national picture somewhat, hence the first drop in 5 years.
The massive number of homes to rent pushed down rents in the southeast by around 2.3%. In every other UK region, the average rent became higher, apart from in Greater London and Yorkshire in the Humber. The average rent in the North East rose by 2.6% to £564 per month, which is the biggest quarterly increase.
A Consistently Unappealing Housing Market
With a chronic shortage of new homes, Britain’s housing market looks consistently unappealing. The young people of Britain are spending 3 times as much as their grandparents did on housing, and according to reports, all for worse quality accommodation.
The number of households privately renting in the UK has increased massively over the years too. In the last 20 years, around 65% of UK households were owners at the end of 2016. 17% were renting from a private landlord and 18% from a social landlord. Less and less people are buying property now, either saying they can’t afford to save up for a deposit or that it’s more of a liability than an investment.
Sam Mitchell, Rightmove’s head of lettings, explains that more landlords are acquiring homes outside of London. This has increased the supply of available property which has in turn pushed down rent. Many agents looking for better yields are now shifting their focus from London. Soon, there could even be a shortage of places to rent in the capital.
Prices have not fallen as much in areas that boast good commuter links, as the demand remains high here. For landlords who are seeking good investments outside of the capital, the most popular areas include; Berkshire, Buckinghamshire, and Surrey.
Average Rent Across The Country
Asking rents in London fell 3.3% in September, with an average of £1,920 per month. The average asking rent across the country is a mere £789 in comparison, so this is still a pretty gargantuan amount that few can afford.
However, it has been predicted that the asking prices of rent in London will rise again soon. This is due to the supply of available accommodation decreasing in the area due to landlords going elsewhere to make money.
