First annual decrease for rents in UK since 2010 according to Countrywide
Rents in the UK have recorded their first annual decrease since 2010, according to Countrywide plc Monthly Lettings Index report for February 2017.
Tenant demand has been dropping the fastest in London, possibly caused by the Brexit decision. This drop in demand has seen rents in the capital drop 4.3% over the year to an average of £1,246 a month. Rents in the south-east have dropped by an average of 2.6%, in other parts of the UK however they are still rising, markedly at a slower pace than in previous months. Rental growth overall for the UK is being dragged down by London and the South East.
Johnny Morris, research director at Countrywide, said: “Economic and housing sentiment – both in sales and rental markets – has been affected by our vote to leave the EU, in London more than anywhere else. This uncertainty causes tenants to be more cautious, meaning less likely to move and more likely to look for cheaper accommodation, eg sharing. With the private rented sector home to around three-quarters of new migrants, any future substantial shift in migration patterns would likely have a knock-on effect on rents.”
Read the Countrywide plc Monthly Lettings Index report for February 2017 in full click here.