Rents for new lets fell in over half of the UK’s regions in August, with Central London seeing the biggest drop, new research shows.
According to the Countrywide Lettings index, rents fell in five of the nine regions recorded for the year to August.
Rents dipped in the South East, the South West, the Midlands and Wales. The biggest fall was in London where rents fell 2.0%.
Overall, rents rose slightly from 1.5% to an average of £960, up from £946 last year.
There has also been a slight rise across the UK in the number of renters paying above the asking price to secure a property.
Nationally the proportion of homes let above asking price saw a marginal rise of 0.2% compared to 8% in London.
Supply in the rental market still remains high, reducing the competition between tenants to find the right home.
Following the stamp duty rush and changing housing market sentiment following the EU referendum, supply has matched or grown faster than tenant demand across the country – particularly in the South – leading to a slowdown in the rental market and price falls in many regions.
Both London and the South East have seen the number of homes available to rent in August grow by 26% and 22%, respectively, compared with the same period last year.
This is faster than their tenant demand which has grown by 8% in London and 3% in the South East. In contrast, nationally, supply grew by 26% while demand grew by 17%.
Johnny Morris, research Director at Countrywide, said: “In London and the South East recent increases in the number of homes available to rent, outpacing the growth in tenants looking for a home, has meant that bargaining power is shifting towards tenants from landlords. This is slowing rental growth.
“Overall slightly more tenants are offering above asking price than last year. The majority continue to pay asking prices. Unlike the sales market rental prices adapt very quickly to changes in market conditions, meaning asking prices are finely tuned to tenant demand.”
span style=”color: #000000; font-family: Calibri; font-size: medium;”>Monthly rental prices for new lets
| Region | Ave Rent Aug-16 | Ave Rent Jul-16 | Ave Rent Aug-15 | August Rent YOY |
| Greater London | £1,299 | £1,280 | £1,288 | 0.9% |
| Central London | £2,434 | £2,638 | £2,484 | -2.0% |
| East of England | £977 | £963 | £912 | 7.1% |
| South East | £1,188 | £1,173 | £1,205 | -1.4% |
| South West | £862 | £856 | £853 | -1.1% |
| Midlands | £705 | £703 | £708 | -0.4% |
| North | £697 | £694 | £676 | 3.1% |
| Scotland | £726 | £689 | £696 | 4.3% |
| Wales | £669 | £671 | £672 | -0.4% |
| Britain | £960 | £951 | £946 | 1.5% |
Source: Countrywide
