Home Business British rental prices are sliding for the first time since 2019, but London remains at record highs

British rental prices are sliding for the first time since 2019, but London remains at record highs

by trpliquidation
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Rents across the UK have fallen slightly for the first time in more than five years—although tenants in London are still seeing new highs, according to fresh data from Rightmove.

The rental prices in the United Kingdom have fallen somewhat somewhat in more than five years – although tenants in London still see new highlights, according to new data from Rightmove.

In addition to the capital, the advertised rents fell by 0.2% to an average of £ 1,341 per month, the first such decrease since the end of 2019.

Although the monthly difference corresponds to only £ 3, Rightmove describes it as an ‘important milestone’, which reflects a slow improvement in the balance between supply and demand on the rental market. The rental prices are still 4.7% higher than a year ago, but that is far below the inflation peak of 12% in 2022.

Colleen Babcock, head of the trade marketing of Rightmove, attributes the relaxation to more rental homes that enter the market – than 13% on last year – while the number of future tenants has fallen by 16%. The northeast of England has led to the growth of delivery. Babcock believes that some former tenants have transferred to home ownership, thanks to the stabilizing mortgage interest and lower house price growth.

Nevertheless, the demand for rental properties remains double the pre-Pandemic standard, whereby each real estate attracts around ten applicants on average. This persistent imbalance has pushed the rental prices with 64% higher outside London since the first Lockdown in March 2020. In the same period, rents in London have risen by 28%.

In contrast to the modest decline elsewhere, the average rents in the capital have risen to a record of £ 2,695 per month, which marks new highlights in every quarter since the end of 2021. That said, the annual increase in London of 2.4% is the lowest in almost four years.

“We see a cooling of what a furious hot rental market has been,” said Alex Bloxham, head of residential landlords at Bidwells, who notes that any continuous improvement of the supply of downscent pressure must exert on rental prices.

In the meantime, Labor’s proposed bill for tenants, who aims to improve the security and rights of tenants, can be introduced later this year. Some landlords have expressed concern about these reforms, but Rightmove says it has not noticed an immediate impact on current market conditions.

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