London rental prices grow at slowest pace in the UK

London’s rental market has inflated at record speed in recent years as high house prices prevented swathes of potential first-time buyers from taking the leap. In fact last June average rent in the capital stood at £1,295 per month, just over £500 more than prices in the South West, the next-most expensive region.

 

But figures published today suggest London rents rose by the smallest percentage in the UK between June and July. According to the monthly HomeLet Rental Index, prices in London rose 1.2% to £1,412, compared with 5.7% in the South West, 6.7% in Wales – and 10% in Scotland.

 

 

Admittedly, compared with July last year, London was still at the top of the table: prices in the capital have risen 9.4% year-on-year. However, other regions were catching up. In East Anglia, prices also jumped 9.4%, while the South West showed a rise of 8.1%. By contrast, in the North East, prices fell 1.2%, from £526 in July 2013 to £520 last month.

The low level of growth in the sector is another suggestion the house price bubble is, if not bursting, then seeing growth slow, making it easier for first-time buyers to access the market. 

 

Figures published by Rightmove this morning suggest London house prices fell for the third month in a row between July and August, dropping by almost 6%, while a survey by the Royal Institute of Chartered Surveyors last week found the number of agreed sales fell to 16 per surveyor in July, down from 19 in June.