Throughout June, inner London rents plummeted by 7.4pc while outer London fell by 3.6pc due to lower demand. These figures mark the largest fall on
Throughout June, inner London rents plummeted by 7.4pc while outer London fell by 3.6pc due to lower demand. These figures mark the largest fall on record.
Letting agent Hamptons International said these figures undid all of the rental growth seen throughout 2019.
Across the UK, average rents also fell by 0.7pc to £986 per month, the Telegraph reported.
Surprisingly, seven of 11 British regions saw rents increase as outside the capital rents rose by an average of 1.3pc.
In the North West, rents jumped up by 5.2pc.
London and regions such as the South East and East saw declines in June of 2.2pc and 0.2pc respectively.
Property website Rightmove found between April and May asking rents hit a record high of £845 per month outside of London.
The number has jumped 3.4pc year-on-year but Greater London saw asking rents drop by 0.6pc.
Rightmove also found overall rental demand hit an all time high on July 6.
The Telegraph reported the collapse of the travel and tourism industry due to the pandemic has impacted landlords.
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On a national scale, there were 6.3 tenants looking for every available home in June.
This number was just 3.9 in London, which was down from 49pc in the same period last year.
In the North West, the number of listings fell by 26pc while tenants jumped by 6pc.
There were around 12.1 applicants per available home last month.
This new crisis comes after landlords have been forced to change the system used to charge tenants.
As of last month, property owners and letting agents in England were banned from charging tenants fees for signing rental agreements.
If they fail to adhere to the new rules, they could face large fines.
Tenants will be able to reclaim their money through the court and landlords could risk being fined £5,000 for the first offence.
This figure would increase to a hefty £30,000 for any other subsequent violations.
Before the new laws were introduced last year, landlords would take more than five weeks’ rent from new tenants where annual rent is less than £50,000.
If it was £50,000 or more, landlords would take up to six weeks’ rent as a deposit.