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EXCLUSIVE: London rental prices drops by 5 per cent

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Average monthly rents in London have dropped for the fourth month in a row, according to figures analysed by property technology company, Goodlord.

Average rents in the capital for July dropped to £1,608, the lowest figure for 2019 so far. This follows a steady drop in rental costs every month since April, when the average stood at £1,652.

In starker contrast, rents in July 2019 were 5.04% lower month on month than in January 2019, when the average stood at £1,694.

After some price fluctuation in the first quarter of 2019, including a dramatic dip in February before the market rebounded, London rents have been steadily decreasing since April.

Average Monthly Rent January February March April May June July 2019 average Month on month % change June-July % change Jan-July
Greater London £1,694 £1,619 £1,651 £1,652 £1,643 £1,621 £1,608 £1,641 -0.78% -5.04%

 

Goodlord used the data from over 20,000 tenancies processed on behalf of letting agents across London and the UK to compile the analysis.

Average rents during 2019 to date across the UK as a whole is £903 per month, almost half of the cost of renting in the capital, where the 2019 average stand at £1,641.

The average income of a London renter currently stands at £36,029, with 31 being the average age of the capital’s tenants.

The lowest rents in the UK can be found in the North East, where average costs are just £658 per month and average income stands at £18,655. These figures show that renters in the cheapest and most expensive parts of the UK are both spending over 40% of their salaries on rent.

Tom Mundy, COO at Goodlord said, “Rental prices have been fluctuating across the UK all year but it’s in London where we’re seeing the strongest pattern emerging. The dip in average rents will be welcomed by the capital’s tenants, who are already paying far more than the UK average for their rental properties. Combined with the ending of Tenant Fees in June, now is undoubtedly a good time to be a renter. However, the unsteadiness of average costs will be causing anxiety to both landlords and letting agents at a time of seismic regulatory change for the wider industry.”

UK wide rental costs

January February March April May June July 2019 Regional Average Month on month % change June-July
East Midlands £842 £864 £820 £832 £805 £800 £804 £824 0.61%
Greater London £1,694 £1,619 £1,651 £1,652 £1,643 £1,621 £1,608 £1,641 -0.78%
North East £653 £635 £645 £618 £634 £657 £658 £643 0.20%
North West £815 £752 £761 £774 £711 £735 £750 £757 1.95%
South East £984 £967 £984 £1,009 £1,044 £980 £977 £992 -0.32%
South West £947 £878 £902 £867 £896 £947 £942 £911 -0.48%
Wales £731 £693 £749 £770 £756 £800 £794 £756 -0.75%
West Midlands £668 £689 £673 £699 £720 £719 £711 £697 -1.11%
UK average £917 £887 £898 £902 £901 £907 £906 £903



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