Phone Us

Rent Gap Between London and the Rest of Great Britain Closing

A new rental index has revealed that the disparity between rents in the capital and the regions is beginning to narrow at the end of 2016.

Difference in Rent Between London and the Regions Contracts

A new rental index has revealed that the disparity between rents in the capital and the regions is beginning to narrow at the end of 2016.

The average rental rate within Greater London now stands at £1,298 per calendar month, with the average for the rest of Great Britain standing at £809, according to figures published by Countrywide, one of the UK’s largest estate agents.


Whilst the 60% variance between London and the regions remains the second highest differential of the past decade, it is also down from the 62% gap seen in 2015, marking the first contraction in the rental gap since 2010.


Over the past 12 months, rents in the capital have fallen by 0.7% and London has fallen from being the area with the second fastest rate of growth to the slowest.


According to the report, a surge in availability within the rental market in London has been a key factor in the decline of rents in London. In November, there were 32% more homes to rent in London than there was a year prior, with the number of tenants rising by just 9% over the same period.


Elsewhere in Great Britain, the North of England saw the largest number of new lets in November, increasing by 4.7%, followed by the East of England and the South East, where the numbers rose by 4.3% and 3.6% respectively.


In terms of re-lets, Scotland achieved the highest number with a rise of 6.1%, demand in the Midlands grew by 4.9% and Greater London (excluding Central London) rose by 4.6%.


Commenting on November’s index, Johnny Morris, Research Director at Countrywide, said:


‘Since the gap between London rents and those in the rest of the country hit a high watermark in 2015, the gap has been gradually narrowing. The pressure on affordability and number of homes coming onto the rental market in the capital means that rents are likely to lag behind the rest of the country in 2017.’


The slowdown in rental growth in London was also reported in a new index from HomeLet last week, with the figures indicating the capital was the slowest growing region in the UK.

X
Cookies on our website:
This website uses cookies.
I'm OK with this Cookie Settings ?