Rental prices in London fell over the last three months for the first time since 2009, as the effect of Brexit begins to bite and tenants see an increase in bargaining power.
Reports published last week, based on HomeLet statistics, highlighted a slowdown in London rents, reflecting the first annual fall in values since 2009 dropping by 1.2 percent. Whilst this has generally been attributed to the Brexit-effect, large numbers of new-build units are also hitting the market, increasing the available properties by 28.1 percent.
This increase in properties has been accompanied by a 6 percent discount on asking rents over the last three months and this, alongside the number of properties actually let dropping 14.8 percent over the same period, has caused a fall in achieved rents of 2.8 percent.
Naomi Heaton, CEO of LCP, commented: “In much the same way as we see in the sales market, there is increasing fragmentation in the lettings market, according to property type (new build or traditional stock) and by price point. Alongside the oversupply of rental stock in new build heartlands, the uncertain economic outlook has resulted in tighter tenant budgets. It is therefore not surprising that recent reports indicate a 14.8% fall in the number of properties rented South of the River over the last three months and a 6% discount on asking rents.”