Croydon rents fall as new housing “booms’

Estate agent signs. Pic: Paul Mison

Estate agent signs. Pic: Paul Mison

Rental prices were reportedly fell across the UK last month, particularly in south east London, where Croydon stood out for the fastest falling rents in the capital.

The research came from HomeLet, a company that collects references, for landlords.

Martin Totty of Barbon Insurance, which owns HomeLet, said: “Croydon and some parts of Essex are benefitting from a relative boom in new property building, easing the pressure on the local rental market and this is reflected by a drop in rental prices.”

Rents in Croydon, according to this survey, are also significantly lower than the London average. When shared flats and bedsits are included, the average monthly rent in Croydon was £441 in 2014, which is 23 per cent lower than the year before.  The average rental rate for London was recorded as £1,418.

According to HomeLet, the drop in prices might be a seasonal effect. Average  December rents across the country fell from £874 to £867, but the yearly figures for 2014 showed an upward trend of 6.6 per cent.

These figures were supported by other data from letting agencies Reeds Rain and Your Move, which announced a fall of 0.1 per cent between November and December, but a rise of 3 per cent over the year.

Totty is not optimistic that December figures will continue it’s falling trend next year: “With property prices continuing to grow, and mortgage criteria tightening, the rental market represents a much more accessible option for house hunters than the property ladder.”

“The demand for rental property is increasing, and we expect it to continue doing so in 2015 as large numbers of people are priced out of buying.”


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