An increase in the number of homes for rent in London is being blamed for the first drop in agreed rents for new lets in nearly six years
A new study reveals that new lets in London were around £7 cheaper in July than a year earlier.
The last time rents inside the M25 recorded a year-on-year fall was in November 2010, when the average monthly rent in London was £923.
The new study reveals the current average monthly cost of new lets in London is £1280.
The drop in income generated by new lets is being blamed on landlords snapping up buy-to-let properties before the introduction of a 3% stamp duty surcharge on second homes in April.
The report points out that in the capital a third more houses and flats were available for rent in July when compared with 12 months earlier.
It adds that in the past 60 days, 14.1% of all properties withdrawn from the sales market in London have been listed for rent.
This has had a marked effect on landlords receiving more than their asking price.
In July 2015, 32% of tenants in London paid over the asking rent to secure a home compared with 11% in July 2016.
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For more information on rental values, click on the link below
Financial Times