Landlords in London can heave a sigh of relief, as the rents have stabilised in the capital, witnessing an annual growth of 2.1 per cent, according to the latest Countrywide Monthly Lettings Index (July 2017).
“The run of eight consecutive months of falling rents in London came to an abrupt end in July. Rents in London ended the month 2.1% up on last year, as the number of properties available to rent in the capital fell sharply. Across Great Britain the rate of rental growth doubled from 1.1% in June to 2.2% in July,” a statement from Countrywide said.
It is a fact that the drop in the number of homes to rent in London has not been matched by a fall in tenant numbers. The number of prospective tenants in London has not changed when compared to the corresponding period last year. It means that the same number of tenants are looking for newer rental properties.
This shortage in rental properties impacted the residential housing market. The annual rate of rental growth in Great Britain doubled between June and July to 2.2 per cent, driven by a turnaround in the London market.
The Countrywide Lettings Index has been running since 2012 by using data from Great Britain's largest letting agent to track changes to the cost of renting.
The rush to beat higher stamp duty rates in April 2016 caused a spike in the number of homes to rent, but that has now worked its way through the market.