London rents have dropped 5.0 per cent in the past year

London rents have fallen by an average 5.0 per cent in the past year according to new data released by Your Move.

The company says London rents actually nudged slightly higher in May this year but remain a full five per cent down on May 2016. The average rent in the capital is now £1,276. 

The average rent in London Zone 2 reached £1,618, almost £300 more than the average rent in Zone 3 (£1,361). The lowest rents in London were at £1,064 in boroughs that share the Zone 3 and 4 boundary, with further reaching zones such as 6 reaching £1,253 in May this year. 

The Your Move figures cover the last full month before the General Election but it appears political turbulence had little direct impact on rental prices. On a monthly basis seven regions saw rents rise or hold steady. 

Only Wales (-0.5 per cent), the East of England (-0.4 per cent) and the North East (-0.1 per cent) saw rental prices drop between April and May. 

This means the North East remains the cheapest place to rent a property in England and Wales at £544 per month. 

Across England and Wales the average rent in April was £814, 1.3 per cent higher than a month ago and 2.8 per cent up year-on-year.

“While landlords have seen yields squeezed in recent times, there are signs this could be stabilising. Returns this month were 4.4 per cent, the same as in April” says the firm’s lettings director Valerie Bannister.