LONDON – London’s stagnant property market is dragging back the UK market as a whole, according to the July rental index from rentals-insurance firm HomeLet.
It found that the average price for new lettings grew by 1.1% in July across the UK, but fell by 0.6% in London to £1,564 a month.
That makes July the fourth month in a row in which London saw rent price falls.
The pace of decline is slowing – June saw a 2.9% drop – but the London market is now starkly different from even last year.
Rents in the capital were rising at a rate of 6.6% per month in July 2016.
London’s property market has been adversely affected by uncertainty around the Brexit vote, as well as tax changes for landlords in April last year. A stamp duty hike on second homes led to a rush of landlords buying new properties, which subsequently boosted supply.
HomeLet said the figures show the Greater London rental market “continues to act as a brake on the UK as a whole”
Rental figures from the July 2017 HomeLet Rental Index
How that breaks down (annual variation, July 2016 to July 2017):
Greater London: -0.6%
UK excluding Greater London: 1.6%
Here’s how it breaks down across the UK: