Evidence is emerging that tenants are losing their bargaining power after new research revealed landlords in London are letting property for 100.9% of the asking rent – the highest value since 2007.
London also has the highest rate of growth in rent prices of anywhere in the UK since 2007, with rents up by 34% over their pre-recession peak.
The latest monthly lettings index also shows one in five tenants in the capital pay more than asked for to secure a home.
The report calculates that this works out as an extra £94 per month for the average London tenant, which adds up to an extra £1578 in rental income for landlords over a typical 17-month tenancy.
In the UK as a whole, rents have risen by 12% since 2007. However, landlords are receiving 99.9% of their asking price.
And tenants who pay over the asking price hand over an average of £44 a month.
But in Wales just one in 12 tenants pays more than the advertised price. This nets landlords and extra £24 per month.
In 2008, just 3.5% of UK lets were agreed at over the asking price, while 23.5% of tenants were able to negotiate a lower rent price.
This year, the amount of tenants able to negotiate price reductions has tumbled to 8%.
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