Cheaper rent in London for the first time in nearly a decade, thanks to Brexit
Rents in London fell in April for the first time in an annualised basis since December 2009, while rental inflation across the UK fell to its lowest level for seven years, according to the latest HomeLet Rental Index.
The average monthly price of a new tenancy in the capital fell to £1,519 in April from £1,537 in the same month last year, a 1.2% drop.
The negative growth in London, combined with a smaller decline in the rest of south-east England, pushed rental price inflation down across the country as a whole, Business Insider reports.
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Prices were pushed down due to fears over the effects of Brexit in the capital, combined with a sudden supply glut.
“Economic and housing sentiment — both in sales and rental markets — has been affected by our vote to leave the EU, in London more than anywhere else.” said Johnny Morris, research director at Countrywide.
“This uncertainty causes tenants to be more cautious, meaning less likely to move and more likely to look for cheaper accommodation,” he added.
“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.” Insurance firm HomeLet’s chief executive Martin Totty explains.
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