London rental prices drop by 1.4 percent but the capital remains most expensive place to rent in the country

The average price of London rent has fallen by 1.4 percent to £1,271 however the capital remains the most expensive place to rent in the country.

London joins the North East and Wales as the only three locations in England and Wales where private rental prices have fallen over the past year.

Elsewhere, private rents have increased by 2.6 percent annually, according Your Move’s rental tracker.

It found that the average monthly rent across England and Wales in August was £861.

The index is based on an analysis of around 20,000 properties and found that rents are increasing fastest in the South West of England.

Rental prices in the South West grew by 4.1 percent annually. In August prices reached an average of £686 with the popularity of the region's rural areas as well as Bristol helping to push rents higher.

The next strongest performer was the East Midlands, where prices grew by 2.7 percent year on year to reach £656.

Martyn Alderton, national lettings director at Your Move, said: "Regionally, the market remains strong, with demand in the core market of two and three-bed properties remaining high."

He continued: "It appears that there is less rental stock available this year compared to the same time last year.

"Whilst this could be the result of tenants staying in their rental properties longer or of landlords choosing to exit the market in light of recent legislative changes - it is also true that properties are letting more quickly than they were a year ago, giving the impression of fewer properties available to rent."

The index also found that, despite the growth in rental prices, tenants' finances remained stable.

The survey found that 9.7 percent of all tenants were behind with their payments in August, the same percentage as in July.

The all-time high for the index of 14.6 percent of tenancies in arrears was recorded in February 2010, while the most recent high of 13.7 percent was found in July 2017.

Additional reporting by PA.