A 10% drop in rental prices in the capital has fuelled a rise in renters taking advantage of the cut-price market, according to TwentyCi’s latest Property & Homemover Report.
It reveals there has been a significant resurgence in the number of tenants looking to rent in London, which is bucking the national trend of supply significantly exceeding demand.
The data firm says the downbeat performance of the rental sector regionally year-on-year continues to be suppressed as the desire for urban living with shorter commutes is replaced by more flexible locations and a shift for those able to buy their own home.
The average asking price across the UK is now £1,331 per month, a fall of 2% since Q1 2020.
But it adds that this is likely to change as the impact of the pandemic subsides and London recovers.
TwentyCi’s Q1 report reveals year-on-year growth in lets agreed was up 35% in inner London and 1% in Outer London.
But the rest of the UK saw dips which were more dramatic in some regions than others; rent growth in Northern Ireland fell by 2% while the South East was down by 7.5%. The North East and South West saw the biggest falls with growth down 13.2% and 18.7% respectively.
It was a mixed picture in the UK’s cities, with Edinburgh experiencing the highest year-on-year growth, up 15%, with Manchester up by 13%, while Peterborough saw a 15% fall and growth in Plymouth was down 31%.
The number of new rental instructions fell 8% to 337,749 over the last year, while the number let fell 4% to 209,098.