London rents fall but stronger performance in rest of the UK

The latest HomeLet rental index suggests that the average rent in the UK is now £974 after a 2.9 per cent increase in the year to the end of November. 

When London is excluded, the average rent in the UK is now £828, showing an increase of 5.6 per cent on last year - a sign of how much London’s negative performance is a drag on the national picture.

Nine of the 12 regions monitored by HomeLet show a year on year increase in rental values between November 2019 and November 2020, with the South West seeing the largest increase for the third month in a row - no less than 8.6 per cent.

However, rents in London continue to fall, showing a 4.4 per cent drop; Northern Ireland also shows a continued yearly decrease, with a 3.1 per cent fall between November 2019 and November 2020.

HomeLet monitors 21 segments of London - 15 of them have seen rent falls in the past year, with Westminster the worst with a 16.1 per cent drop over the past 12 mo ths., Redbridge and Waltham Forest buck the trend with a 3.5 per cent increase.

HomeLet and Let Aliance 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.”

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