UK rents have fallen for the first time in more than seven years with London seeing the steepest decline, new data has revealed.
This stands as a significant moment for the rental property sector as May’s annual decrease is the first since the property market crash in the wake of the financial crisis in December 2009.
The latest rental index from HomeLet explains that the average rent on a new tenancy commencing in May was £901, 0.3% lower than last year.
Average rent in London was £1,502 in May down from £1,572 a month one year ago, the research found.
In addition to London, other areas have seen a decline during May. The North East of England, The South East, Yorkshire & Humberside and Scotland all have reduced ranging from 2.3% to 0.6%
Commenting on the research, HomeLet’s Chief Executive Officer, Martin Totty said:
“May 2017 saw average rents nationally fall for the first time in eight years when the economy had suffered the shock of the financial crisis. HomeLet rental data suggests landlords are now facing a difficult balancing act between ensuring rents are affordable for tenants in a low real wage growth environment whilst covering their own rising costs.”
In April, the lettings agency Your Move said London had seen a sharp fall in rents over the previous 12 months, reflecting the fact that many people looking for rental properties had switched their focus away from the capital.