Landlords more flexible on rental pricing
Rents in London have fallen by 1.2% over the past 12 months, the first year-on-year fall since December 2009*. This is supported by ARLA, which reports that the number of rent reductions rose in March, with 3.6% of agents seeing rents coming down during March.
The average rent in London now stands at £1,519 pcm which accounts for 31.8% of average household income, compared to a UK average (excluding London) of 27.8%.
However, many landlords are being flexible on pricing and are now agreeing to hold rents or even accepting lower rents from good existing tenants in an effort to prevent void periods and the administrative cost and hassle of finding new tenants.
Although there were some rent increases in the UK as a whole in March (25%)**, this has reduced from March 2016, when almost a third (32%) of agents were seeing rent increases.
* The Homelet index