Home Property EXCLUSIVE: London rental prices drops by 5 per cent

EXCLUSIVE: London rental prices drops by 5 per cent

by LLP Reporter
16th Aug 19 12:13 pm

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 ยฃ1,608, the lowest figure for 2019 so far. This follows a steady drop in rental costs every month since April, when the average stood at ยฃ1,652.

In starker contrast, rents in July 2019 were 5.04% lower month on month than in January 2019, when the average stood at ยฃ1,694.

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 ยฃ1,694 ยฃ1,619 ยฃ1,651 ยฃ1,652 ยฃ1,643 ยฃ1,621 ยฃ1,608 ยฃ1,641 -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 ยฃ903 per month, almost half of the cost of renting in the capital, where the 2019 average stand at ยฃ1,641.

The average income of a London renter currently stands at ยฃ36,029, with 31 being the average age of the capitalโ€™s tenants.

The lowest rents in the UK can be found in the North East, where average costs are just ยฃ658 per month and average income stands at ยฃ18,655. 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, โ€œRental prices have been fluctuating across the UK all year but itโ€™s in London where weโ€™re seeing the strongest pattern emerging. The dip in average rents will be welcomed by the capitalโ€™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.โ€

UK wide rental costs

January February March April May June July 2019 Regional Average Month on month % change June-July
East Midlands ยฃ842 ยฃ864 ยฃ820 ยฃ832 ยฃ805 ยฃ800 ยฃ804 ยฃ824 0.61%
Greater London ยฃ1,694 ยฃ1,619 ยฃ1,651 ยฃ1,652 ยฃ1,643 ยฃ1,621 ยฃ1,608 ยฃ1,641 -0.78%
North East ยฃ653 ยฃ635 ยฃ645 ยฃ618 ยฃ634 ยฃ657 ยฃ658 ยฃ643 0.20%
North West ยฃ815 ยฃ752 ยฃ761 ยฃ774 ยฃ711 ยฃ735 ยฃ750 ยฃ757 1.95%
South East ยฃ984 ยฃ967 ยฃ984 ยฃ1,009 ยฃ1,044 ยฃ980 ยฃ977 ยฃ992 -0.32%
South West ยฃ947 ยฃ878 ยฃ902 ยฃ867 ยฃ896 ยฃ947 ยฃ942 ยฃ911 -0.48%
Wales ยฃ731 ยฃ693 ยฃ749 ยฃ770 ยฃ756 ยฃ800 ยฃ794 ยฃ756 -0.75%
West Midlands ยฃ668 ยฃ689 ยฃ673 ยฃ699 ยฃ720 ยฃ719 ยฃ711 ยฃ697 -1.11%
UK average ยฃ917 ยฃ887 ยฃ898 ยฃ902 ยฃ901 ยฃ907 ยฃ906 ยฃ903

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