Rents in London have fallen by 2.6% last month when compared to June 2016, a new rental index has now revealed.
Rents throughout the capital have experienced a continuous drop over the last three months, with the average monthly rent now standing at £1,524.
The latest rental index was published by HomeLet and said:
“While demand for private rental property remains high relative to supply, landlords continue to be conscious of affordability issues for tenants.”
UK rental prices have dropped by 0.3% nationwide compared to the same period last year. For the country, this was the second successive month in which rents dropped. The average rent agreed on new tenancies during June dropped to £908, down from £910 in June 2016.
May saw the first decrease in rents since 2009 with the country’s average dropping by 0.3%.
Martin Totty, HomeLet’s chief executive office, said:
“It is now a full year since rental price inflation in the UK peaked at 4.7 per cent, 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.”