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Lettings market outside London refusing to self-correct, MIAC data shows

Data released by MIAC Property Analytics reveals that while rental prices have returned to their pre-pandemic high in London, the unprecedented and continuing rise in the rest of the country is surprising and difficult to explain.   

MIAC, whose whole-market dashboard shows the most comprehensive and least volatile indices in the industry, confirms that rent prices in London fell by 5% during the pandemic to an average of £1,835pm, as city dwellers migrated out of the capital. However, London values have now recovered, with the average rent price currently standing at £1,922pm compared to £1,921pm pre-pandemic. 

By contrast, rents outside of London have unexpectedly not levelled off at pre-pandemic values, instead continuing to rise sharply. Rents are currently the highest they have been since MIAC’s Index data series began in 2012, with the steep upward curve still showing no signs of levelling. As a result, average rents for the UK, excluding London, currently stand at £1,301pm, up from £1,252pm a year ago. 

MIAC Analytics managing director Darrel Welch comments: “What these figures capture is a significant disconnect between the migration of people back into London and the trajectory of rental prices outside of the capital.  

“It’s difficult to pin down the exact reasons behind this anomaly but one of the contributing factors may be the larger than usual influx of first-time renters into the market. Covid caused many young people to stay in the family home longer, which could be contributing a higher pressure on supply as a larger annual cohort than usual is now trying to rent a house.”

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