In January, it was revealed that the average room rent in the capital is down 8% year-on-year. In some central London areas, the drop is closer to 25%.
Now a new report by Rightmove has shone a spotlight on several London neighbourhoods where rents are actually lower now than they were in 2016. In Finsbury (EC2) on the edge of the City, rents have fallen by a hefty 24% in this period.
In Barnes (SW13) and Stockwell (SW4), they've fallen by 20% over the last five years. And in Notting Hill (W11) and super-fancy Knightsbridge (SW1), they're down 19% and 17% respectively since 2016.
"Prices are the lowest we have seen for several years and represent incredibly good value for those tenants thinking beyond lockdown and looking to lock-in to a good deal," said Richard Davies of Chestertons. "As the country starts to open again, we expect growing numbers of tenants to return to the more central areas and anticipate that rents will quickly start to recover."
In fact, outside of London, rents are only down since 2016 in seven areas, three of which are the Surrey commuter towns of Weybridge, Woking and Walton-on-Thames. The others are Birmingham city centre, Southampton city centre, Chigwell in Essex, and Leamington Spa in Warwickshire.
Rightmove's Tim Bannister said there is currently a "stark contrast" between what's available to rent in London and what's available elsewhere in the UK.
"Agents are telling me that they don’t have enough rental stock to meet the demand from tenants in many areas, while in London there will be some tenants who have a lot more stock to choose from," he added.