Despite rent controls being a vote-catching coverage for some native election candidates subsequent week, the actuality is that asking rents in 65 per cent of London areas are decrease than 5 years in the past.
But knowledge from Rightmove reveals that the identical might be stated in solely 4 per cent of the areas exterior of London.
The 5-12 months examine by the portal seems to be at 900,000 rental properties; it discovered the decline in rents is being pushed by Inner London, the place asking rents are down by 6.5 per cent now in contrast with Q1 2016.
In Outer London rents are holding up higher; even so, they’re solely 2.0 per cent increased than 5 years in the past.
The greatest drop in the capital is in Finsbury, the place asking rents are 24 per cent down on 5 years in the past from £2,818 per calendar month to £2,147. The variety of rental properties in Finsbury on Rightmove is up by 76 per cent in comparison with a 12 months in the past.
The greatest 5-12 months rise in London is in Hammersmith the place asking rents are 12 per cent increased than 5 years in the past, though the rental progress occurred between 2016 and 2020 as rents proper now are down by 19 per cent in the space in comparison with this time final 12 months.
The figures spell some excellent news for individuals seeking to rent a brand new property in London, as there could now be extra areas open to them that earlier than have been fully unaffordable.
The greatest decline in money phrases is in Knightsbridge the place month-to-month rents are £1,246 decrease than 5 years in the past though they’re nonetheless a hefty £6,221 pcm.
Outside London there are solely seven places in the examine with asking rents decrease than 5 years in the past. Three are in Surrey (Woking, Walton-on-Thames and Weybridge), plus the two metropolis centres of Southampton and Birmingham, together with Leamington Spa and Chigwell.
The rental market is seeing report demand and an absence of accessible inventory throughout all areas exterior London, resulting in robust rental progress throughout all areas and month-to-month asking rents at a report of £982 pcm.
The East Midlands has seen the greatest improve over the previous 5 years of 19.3 per cent, rising from £733 to £875 per calendar month. It has additionally seen the largest progress over the previous 12 months, up by 7.5 per cent.
The robust demand has led to the proportion of accessible rental inventory exterior the capital being down by 54 per cent in comparison with this time in 2019, whereas in London it’s up by 19 per cent.
This has led to the majority of areas seeing properties let to a tenant in the quickest time since Rightmove began recording this knowledge 10 years in the past. The South West is the quickest at 14 days, adopted by the East Midlands at 17 days.
Rightmove’s Director of Property Data Tim Bannister stated: “Our knowledge reveals a stark distinction between the rental market in central areas of London and the market throughout the remainder of Great Britain. Agents are telling me that they don’t have sufficient rental inventory to fulfill the demand from tenants in lots of areas, whereas in London there might be some tenants who’ve much more inventory to select from.
“Landlords who 5 years in the past took a long run view clearly couldn’t foresee the impact that covid would have on rents, and proper now they’ll be doing all they’ll to forestall voids and hope the drop in rents is fleeting. The frenzied shopping for and promoting market is more likely to be exacerbating the downside as nicely, as some sellers are shifting into rental lodging till they discover the house they want to purchase, including additional demand to already diminishing rental inventory ranges.”