Empty properties see rents fall in capital

Londoners looking to rent flats and houses last month were handed a festive treat as landlords scrambled to fill empty properties.

The average rental price fell 1.5% to £1,087 across the capital in December compared to the month before — but still increased 6.3% year-on-year.

David Newnes, director of LSL Property Services, who compiled the research, described the figures as a “seasonal blip”.

He added: “Tenants were in a stronger bargaining position as landlords reduced rents to fill empty properties in the slower winter months, yet as the new year progresses the underlying weakness in the mortgage market will mean competition will heat up once more.”

Overall, rents across England and Wales dipped 0.9% to £734 in December with prices falling in all regions except the South West, Wales and the West Midlands.

Despite this, LSL Property Services said the average investor in England and Wales can expect a total annual return of 4.3% per property over the next 12 months.

“Long-term problems remain for new buyers looking to leave the rental market and Funding for Lending is a double-edged sword,” Mr Newnes added. “Extremely low saving rates are hitting those still trying to pull together a deposit — a problem accentuated by the record low base rate.”