London Buy-To-Let Landlords fall behind rest of UK

Buy-to-let landlords in London are falling behind as rents rise at a slower pace than in the rest of the UK.

The average London monthly rent rose 6% in the year to November against a 10% rise across the UK, according to new research from estate agency chain Sequence.

Yet the average monthly London rent is almost twice as high at £1,463 a month, against £777 for the UK as a whole. Outer regions are regaining momentum and rebalancing the market, Sequence said.

New tenancies across the UK rose 13%, but fell 2% in London. Across the UK, new tenant applications rose 6% over the year, while London remained flat.

The capital also suffered a larger seasonal slowdown in November, with agreed tenancies falling 12% against a 6% drop nationally.

Buy-to-let mortgage applications continue to soar nationally, rising 41% over the year.

Stephen Nation, head of lettings for Sequence, which owns estate agencies Barnard Marcus, William H Brown and Fox & Sons, said the UK was outperforming London in rents, new tenancies and new tenant applicants. “It is the regions, not the capital, propelling the continued buoyancy of the rental market.

“It is clear to see that far from being stifled by a growing sales market, the national rental market operates independently, drawing on a different pool of supply and demand.”

He said London’s sharper slowdown in November was partly due to its “unique” nature, with more variables such as a larger corporate and tourist lettings sector.

“London buyers have also witnessed the highest sales price increases and highest levels of buyer registrations, which could also account for the subdued figures.”