It’s a case of London versus The Rest when it comes to the rental market, according to HomeLet.
Its latest market snapshot shows nine of the 12 regions of the UK with rent increases in the year to the end of November – the largest exception is the capital.
Fifteen of the 21 London areas monitored by HomeLet showed a year-on-year decrease in rental values between November 2019 and November 2020. London as a whole is down 4.4 per cent annually.
Westminster shows the largest London decrease with a 16.1 per cent fall between November 2019 and November 2020, while Redbridge and Waltham Forest actually show a 3.5 per cent increase YOY.
The average rent in the UK is now £974, a 2.9 per cent increase on November 2019; when London is excluded, the average rent in the UK is now £828, an increase of 5.6 per cent.
Outside London, the South West is seeing the largest increase for the third month in a row – up 8.6 per cent annually.
HomeLet and Let Alliance chief executive Andy Halstead says: “Outside of the capital we’re seeing UK rents rise at the highest rate we’ve ever reported, yet in contrast rents in London are now decreasing at the highest rates that we’ve ever reported.
“Whilst the trend is being driven by the increase in people working from home and tenants looking for properties with extra space, both inside and outside the property, we may also be seeing the continued impact of Brexit on central London.
“Alongside the increase in rental values outside the capital, we’ll continue to see confidence grow in property investment in areas such as the North West. We’d also expect that demand for property in less built up areas, which are commutable to urban centres, will continue to increase across the country.”
This post has originally been featured in Letting Agent Today.