There was good news for the millions of renters in London on Friday, with rental costs increasing at a much slower rate in the capital than elsewhere in the UK.
Rent increases have slowed significantly in London, according to the Association of Residential Letting Agents’ latest report, with only eight per cent of agents based in London saying rents went up in February This compares to the national average of 25 per cent.
In fact, a quarter of London-based agents saw rents decrease last month, compared to just ten per cent nationally. This figure comes alongside a decrease in the amount of stock on the market, with the number of properties managed per branch increasing to a high of 193 in January but falling to 183 per branch last month.
This is a four per cent increase from February 2016, when there were 176 properties managed per branch, indicating stock is rising overall.
David Cox, ARLA Propertymark Chief Executive, said: “The fact that rent prices in London are bucking the national trend is a positive sign for both renters and prospective renters in the Capital. However, this isn’t being seen across the rest of the country, as the national average for the number of agents reporting rent hikes rings alarm bells.
“While London’s results indicate a step in the right direction, it must be taken with a pinch of salt. With the imminent withdrawal of mortgage interest relief and the Government’s decision to ban letting agent fees will more than likely have the opposite effect on rental costs across the country if an out-right ban is imposed. The costs of the services provided by letting agents will need to be recouped and will inevitably be passed onto renters through increased rent.”