The extraordinary pressures on the rental market caused by the pandemic are making their presence felt in the market as rents rocket outside the M25 and plummet inside it. 

HomeLet, which says its index is the most comprehensive measure of rents in the UK, said rents in the capital dropped by 4.7% last year, the highest annual rate of decline recorded. However, rents outside London have shot up by 6.2% over the same period pushing the average rent up by £151 a month or 6.2% year-on-year to £840 per tenancy. 

Ten of the twelve regions monitored by HomeLet showed an annual increase in rental values between February 2020 and February 2021. The East Midlands saw the most significant growth at 8.1%. But landlords in London have reason to be apprehensive if rents are coming up for re-negotiation or tenants move out. The huge exodus of tenants from the capital, many of whom have chosen to return to their parents to work from home, is driving down rents rapidly, said HomeLet. 

Andy Halstead, HomeLet and Let Alliance CEO, said: “We’ve seen the volume of UK landlords dip, whilst supply from tenants has continued to grow. The average annual rental cost is now £11,808 per year for the 4.44m households who rent in the UK; this represents over £52bn per year in rental payments.”