Rents in London have dropped compared to a year ago, while Britain as a whole has seen values rise.

Hamptons said new lets In Greater London dropped in March this year compared to the same period 12 months earlier.

They fell 1.7% to an average of £2,255 a month, the lowest level in almost two years. This was for new lets.

By contrast, renewals climbed 2.1% to £2,151, according to the estate agent.

It explained that slowing rental growth in the capital has been driven by falls in Inner London.

Rental prices

The average price of a new let fell 4.4% in inner London, while renewals dropped 0.1%.

At the same time, average prices for new lets in outer London grew 1.2%. The growth was significantly more for renewals at 4.7%.

For Britain as a whole, the cost of a newly agreed tenancy rose 1.5% to £1,356 a month.

It is the third consecutive month when annual rental growth has been running below 2% ,and the fifth consecutive month when rental growth across Britain has been below general inflation (CPI).

Meanwhile, the average cost of renewing a tenancy in Britain grew by 4.2% in the 12 months to March.

It brings the average cost to £1,250 a month, which is £106 a month less than a tenant moving into a new home.  

It means the rate of increase for renewed tenancies has been higher than that of new lets in every month since September 2023.

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