Average Rents in London Are at Their Lowest Since 2014, Research Says

London rents have fallen to levels not seen since 2014, creating a two-tiered system between the capital and the rest of the country, which continues to see rents rise despite the pandemic.

According to letting website Zoopla’s September UK Rental Market Report, average rents in London have fallen by 5.2 percent, whereas outside the capital, rents have risen by 1.7 percent. 

The report attributes the fall in London prices to changing demand from renters during the pandemic, which has seen many flee the expensive capital while work from home policies are implemented.

A drop in tourism has also led to a fall in London rents, as holiday lets flood the long-term letting market, reducing average prices. Edinburgh, also a tourism hub, has also seen a fall in rents by 1.6 percent.

The report found that tenants were still spending an average 31 percent of their income of rents across the UK, with average monthly rent at £890 a month.  

The report comes at a time when renters are facing heightened precarity amidst a rapid rise in unemployment because of the COVID-19 pandemic. Last week, Chancellor of the Exchequer Rishi Sunak announced a pause on evictions, meaning tenants cannot be evicted from their homes until after January 11th.  

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Dan Wilson Craw, deputy director of Generation Rent, told VICE News: “Falling rents in London will give some renters a better chance to find a cheaper home. But twice as many private renters in the capital are now reliant on Universal Credit as before the pandemic, so these figures reflect reduced incomes rather than homes becoming more affordable. 

“In the rest of the country, the fact that rents are still going up is a shock. It might be a result of better off renters moving into a better home, while renters whose incomes have been hit stay put,” he continued. “It’s worth checking what rents are like in your local area – if they have fallen it’s an opportunity to negotiate a lower rent, whether you are planning to move or not.”