For the first time in six years rents rose faster outside London than in it according to Countrywide’s November lettings index.
The survey found the average property in the capital was 60% more expensive to rent than homes in the rest of the country, down from 62% in 2015. It's the first fall on record since 2010.
Countrywide said 11% of properties to let in London had seen a cut in asking rent in November 2016, more than double the 5% in the same month the year before.
The estate agency group ’s research director Johnny Morris said: “Higher than usual numbers of homes available to rent has boosted tenants’ negotiating power.
“Stock growth has outstripped that of tenants. This is in part due to the hangover from the rush to beat the 3% Stamp Duty charge earlier in the year and a shift in stock from the sales market.
“With more choice and facing stretched affordability, many tenants are using their new found negotiating power to agree lower rents than in 2015.
“Since the gap between London rents and those in the rest of the country hit a high watermark in 2015, the gap has been gradually narrowing.
“The pressure on affordability and number of homes coming onto the rental market in the capital means that rents are likely to lag behind the rest of the country in 2017.”
The index found the average monthly rent in Greater London (excluding the centre) was £1,284 compared with a national figure of £925 for November.
The figure for central London was £2,402.
That compares with the cheapest region – Wales – where the average home costs £571 a month to rent. Rents in Scotland increased fastest with a 6.1% rise seen on November 2015.
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