First Autumn rental price standstill as South East records annual fall

  • National asking rents outside London dropped by 0.2% in the third quarter of 2017, the first drop recorded at this time of year
  • Drop fuelled by the South East with rents down 2.3% on last quarter, and down annually for the first time, due to steadily increasing supply since last year’s second home stamp duty changes
  • In London asking rents are at their lowest at this time of year since 2013, though a drop in supply and increased demand could mean rental prices will start to rise again soon
  • Properties taking 8% longer to find a tenant outside London and 5% longer in London than in Q3 2016

We usually see asking rents for new properties coming on the market increase in the third quarter of the year, as historically it’s one of the busiest times for tenants looking for a new place. This year however, whilst demand is still strong, rents are pretty much at a standstill, down slightly by 0.2%. The national standstill comes as a result of South East prices dropping by 2.3%, and down annually for the first time over the past six years, at -1.9%.

Rightmove’s Head of Lettings Sam Mitchell explains: “Since last April’s second home stamp duty changes came in the supply of new rental properties in the South East has been steadily increasing, up 5.5% on this time last year. Agents are reporting that some investors looking for better yields are shifting their focus from London to instead buy in the surrounding counties of Surrey, Berkshire and Buckinghamshire. The increase in stock in the South East has led to softening in rents in some areas where there is less competition among tenants, but they are holding up in key commuter areas where tenant demand is strong.”

Asking rents in London have continued their downward trend this month, and are now actually at their lowest at this time of year since 2013, at an average of £1,920. New listings are down 3.7% in London on Q3 last year, the only region in the South to see a drop in new supply.

Mitchell continues: “Last year the supply of rental properties in London increased as much as 26% when investors rushed to buy ahead of the stamp duty changes, leading to cooling rents over the last 12 months in the capital. Now it appears that rental investors are starting to move their money away from London with a number of agents across London saying that investors are being replaced by first-time buyers. This is likely to constrict rental supply in the capital and lead to rents increasing again, so now would be a good time for prospective tenants to act, before this happens.”

Rightmove

UK Property news updates shared directly from Rightmove PLC - the country's leading property portal.

You May Also Enjoy

Rightmove logo
Breaking News

Rightmove asks government to carefully consider property tax changes

The UK’s largest property platform Rightmove is asking the government to carefully consider the impact of any changes to property taxation to avoid unintended consequences which would risk stalling parts of the market. Key data National property tax Just under a third (30%) of homes for sale in England are priced at over £500,000, and…
Read More
Estate Agent Talk

Get Fast and Reliable Basement Flood Cleaning Services

Having water in your basement is awful. It could be because of a storm, busted pipe, or bad sump pump. Whatever the reason, water damage in your basement has disastrous effects if not dealt with. Basement Flood Cleaning Services are what you need. They will dry it out, disinfect the floor, and have your basement…
Read More
Breaking News

Breaking Property News 21/08/25

Daily bite-sized proptech and property news in partnership with Proptech-X.   Providing comprehensive, predictive operational intelligence across all aspects of building operations  JLL (NYSE: JLL) this week introduced artificial intelligence (AI) capabilities that are now available as an add-on to Prism, its award-winning building operations platform. As part of JLL’s property management technology ecosystem powered by…
Read More
Breaking News

UK House Price Index summary: June 2025

The average monthly rate of house price growth in June was 1.4%. The average annual rate of house price growth in June was 3.7%, up from 2.7% in May. As a result, the average UK house price remains at £269,000.   CEO of Yopa, Verona Frankish, commented: “June’s figures reflect a market that is steadily…
Read More
Breaking News

Private rent and house prices, UK: August 2025

Average UK monthly private rents increased by 5.9%, to £1,343, in the 12 months to July 2025 (provisional estimate); this annual growth rate is down from 6.7% in the 12 months to June 2025. Average rents increased to £1,398 (6.0%) in England, £807 (7.9%) in Wales, and £999 (3.6%) in Scotland, in the 12 months…
Read More
Breaking News

Industry response to latest inflation figures

Nathan Emerson, CEO of Propertymark, comments: “Unfortunately, any increase seen within the rate of inflation does brings very justified concerns to consumers, many of whom are still struggling with the cost of living, which has been steadily rising over the past few years. “Although there is more work to be done to help ensure inflation…
Read More