According to estate agency Countrywide, the average monthly rent for newly let properties has fallen for the first time since 2010.
Recent figures released by estate agency, Countrywide, show a drop in monthly rent for newly let properties for first time in ten years, due to a big recent increase in the supply of properties, mainly in London.
A reason for the increase in supply of properties is due to the 3% stamp duty surcharge which came into effect last year, prompting some landlords to quickly make their purchases in order to avoid it.
The average new tenancy in England, Wales and Scotland fell 0.6% in the year to February, to £921 a month.
The main factor was a big drop in rents in London and south east of England.
In the capital they fell by nearly 5% in the past year to an average of £1,246 a month, and in the south east of England they fell by nearly 3% to £1,152.
Everywhere else rental levels continued to rise.
Countrywide’s research director Johnny Morris, said: “Rents are growing in most of the country but falls in London and the south east are dragging down the national growth rate.”
“Early signs point towards 2017 being a rare year where rents rise faster in the north of the country than in the south.”
Countrywide predict that in the coming year, the apparent over-supply of rental properties will be flushed out of the market, with the average national rent starting to grow again after that.
The figures released by Countrywide are very much contradicted by the most recent figures from the Office of National Statistic (ONS), who say that from the year to January 2017, UK rents for private tenants had rises by 2.2%.
Commenting on their own figures, ONS said that “inflation in the rental market is likely to have been caused by demand in the market outpacing supply”.
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