Landlords with a property in London will see rents falling by up to 2% this year but they will rise elsewhere, according to an analysis.
Hometrack has published a report that reveals that in 2017, the average rent for a property in London will drop by 1% to 2% but for other areas in England and Wales, they could rise by 2% to 3%.
The best growth will be seen by landlords in the East of England and the Midlands where rents could increase by up to 5%.
The figures also reveal that residential rental growth has, over the last 10 years, ranged from 45% to -7% across the regions down to local economic factors.
Rents have tracked average earnings
However, rents have tracked average earnings closely over the long-term.
The figures also reveal that rental affordability for tenants in London is now at its worst for a decade while in the regions outside of the south of England affordability is at its best.
There's also continuing growing demand for rental homes but the impact on the rents being asked by landlords around the country varies.
The findings from Hometrack echo research published by property platform Rightmove which reveals that there are more rental properties available in the UK and rents are increasing.
Rightmove says that the supply of homes to rent grew by 7% in the second quarter of this year for regions outside of London, while in the capital demand grew by 8%.
Rents rising by 2.8% outside London
This has led to rents rising by 2.8% outside London to reach an average of £790 per month.
in London, rents have fallen by 0.2% over the previous quarter and are now an average of £1,934.
The head of lettings at Rightmove, Sam Mitchell, said that many industry experts had predicted that rental supply would fall this year as growing numbers of landlords moved out of the market.
He added: “This isn't happening yet but perhaps landlords are re-mortgaging buy to let properties which they feel is a better investment than other industries.”
Mr Mitchell added that there is more choice for tenants but it's unlikely there will be a drop in rental prices and trends are following those set in previous years.
In Scotland the rent price outlook is rosier
For landlords in Scotland, the rent price outlook is rosier with news that rents there have hit a record high following demand that exceeds supply.
The figures from CityLets reveals that rents have increased by 1.5% year-on-year and are now an average of £789 per month.
Most of the growth has been seen in Glasgow and Edinburgh where rents increased by 5% and 5.2% respectively.
A spokesman for the firm said: “Edinburgh has seen positive growth every quarter for eight years and has averaged 6% over the last five. Glasgow has increased on average by 5% over the same period.”
