London was the only region to see monthly and yearly rents both fall in February, new figures have revealed.
According to the latest Your Move buy-to-let index, the average rental property in the capital let for £1,280 during February 2017, 1% lower than a year ago. This figure was also 0.5% down on January’s total of £1,286.
Your Move said this suggested renters in the city have reached an affordability ceiling and are now looking outside the capital for properties.
The only other region to see a fall in rents was the South West, with prices dropping 1.5% during the past 12 months to hit £662. One reason for this trend is that the south has a surplus supply of property for tenants which can cause rents to go down as landlords lower rates to suit the market.
The average rent in England and Wales was £798 in February.
The counties surrounding London have seen rents increase rapidly over the last year as people move to these areas instead.
Rents in the East of England grew by 5.6% in the last 12 months to reach £868, although they did drop back 0.2% between January and February.
In the South East the typical rent increased 3.4% year-on-year, with a 0.1% rise month-on-month. The average property in this region now lets for £878 a month.
Wales is now seeing rents rise faster than anywhere in the UK. While the typical rental property in wales has increased in price by 7.7% over the past year in February, it remains one of the cheapest places to rent at £593 a month.
Valerie Bannister, lettings director at Your Move, said: “The dramatic rent increases in London have now slowed as people look outside the capital in order to meet their housing aspirations.
“Areas in the South East and East of England have traditionally offered much better value than the capital and this has tempted many Londoners to look further afield for rental properties.
“Renters in London could be reaching the limits of their affordability as prices dropped back 1% in the last year. This will be one to watch as the year progresses.
“Away from the capital, Wales saw the strongest outright performance. Rents across Wales increased by 7.7% in the last year, more than anywhere else in the UK.”
