Capital cuts for London landlords

One in five landlords (16 per cent) in outer London has reduced rents over the last year, according to research by the National Landlords Association (NLA).

The research also shows that the proportion of landlords who have been able to increase rents in outer London (23 per cent) is the second lowest in the UK over the same period – only the North East (18 per cent) was lower.

Furthermore the net proportion of landlords increasing their rents in outer London over the last year stands at seven per cent, in contrast to areas commutable to London such as the East of England and South East, where it reaches 44 per cent and 29 per cent respectively.

In central London the figures show that 14 per cent of landlords have decreased rents over the same time period. Around the country, more landlords with properties in the South West (42 per cent) increased their rents in the last year, and in the East Midlands, only one per cent of landlords decreased their rents.

A full regional breakdown of rent rises and falls can be seen in the table below.

The news comes as the ONS’ private rental price index, which tracks the growth of private rental prices in the UK, continues to slow, caused mainly by a slowdown in London.

The findings also continue a trend noticed by the NLA early last year, where tenant demand in Greater London dropped from 45 per cent to 17 per cent.

East of
Eng
land
East
Midlands
Central
London
Outer
London
North
East
North
West
ScotlandSouth
East
WalesWest
Midlands
York &
Humber
Rents
rising
4549262318313063343835
No
change
5247575670655755605763
Rents
falling
11141612313744-
Net
rise
46481276281756303435

These findings do not mean London is suddenly going to become more affordable for renters, but it seems to confirm that the trend of a softening of tenant demand in the capital is well-established. Both landlords and tenants are continuing to look outside of the capital to other centres and areas commutable to London which, if anything, will only serve to push up prices in those regions.

Richard Lambert, CEO

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