Rents in London are increasing at a much slower rate than the rest of the country and the supply of homes to rent is still falling, the latest research shows.
Just 8% of lettings agents report rents rising in London in February compared to 25% nationally, according to the latest monthly private rented sector report from ARLA Propertymark.
Indeed, some 25% of London based agents saw rents decrease last month, compared to just 10% in the country as a whole, the data also shows.
Supply continues to be an issue. Nationally, the number of properties letting agents managed per branch fell by 5% to 176 in February after rising to a high of 193 in January but this is still 4% higher than February 2016.
The data also shows that in February there were 34 prospective tenants registered per member branch, no change from January, but down year on year with 37 registered in February 2016 and 40 in February 2015.
The fact that rent prices in London are bucking the national trend is a positive sign for both renters and prospective renters in the capital, according to David Cox, ARLA Propertymark chief executive.
‘However, this isn’t being seen across the rest of the country, as the national average for the number of agents reporting rent hikes rings alarm bells. While London’s results indicate a step in the right direction, it must be taken with a pinch of salt,’ he explained.
‘With the imminent withdrawal of mortgage interest relief and the Government’s decision to ban letting agent fees will more than likely have the opposite effect on rental costs across the country if an outright ban is imposed. The costs of the services provided by letting agents will need to be recouped and will inevitably be passed onto renters through increased rent,’ he added.
