Rents are falling in major cities as a result of coronavirus, which has caused demand from overseas workers, students and corporate travellers to plummet.
The falls are most pronounced in London whether, according to Zoopla, they have fallen 6.9%. The boroughs in which they did not fall are all at the capital’s periphery.
In a number of city centres, there has been a boost in supply in recent years as developers have jumped in and developed multiple apartment blocks and this has further dampened demand.
Rents have continued to grow in Leeds and Manchester but dipped into negative territory in October.
Average rents are growing at 2% p.a. excluding London. Landlords in outer city suburbs and towns have benefitted as tenants have a relatively limited selection of properties to choose from, with many private landlords having left the market in recent years due to increases in stamp duty and the reduction in tax relief for buy to let landlords.
Zoopla reports that the number of private landlords buying properties to rent is less than half the level it was in 2015.
