Advertised rents in two-thirds of London areas are lower than they were five years ago, analysis by Rightmove has found.

The capital is the only region where average asking rents are lower than they were in 2016, with a drop of 2.3%.

By contrast, the East Midlands has seen the biggest rise over five years, with rents up by 19.3% to £875 a month.

It comes as the average of rents advertised nationally, but excluding London, hit a record high of £982 a month.

The property website says this is an increase of 4.2% on Q1 last year and the highest annual growth rate since 2015.

Available rental stock in London is 19% higher compared to this time in 2019, but outside the capital it is down by 54%.

The time it takes to let a property is at its fastest pace ever in seven regions.

Properties in the South West are the quickest to let, as it is taking an average of just 14 days to agree a tenancy.

Turning back to London, the five-year analysis shows the decline in rents has been driven by inner London, where asking rents are down by 6.5%, compared to outer London, where rents have increased by 2%.

The biggest drop in the capital has been in Finsbury in central London, where asking rents are down by 24% from £2,818 per calendar month to £2,147.

The biggest five-year rise in London is in Hammersmith where asking rents are 12%, although the growth occurred between 2016 and 2020 as rents are down by 19% in the area compared to this time last year.

Rightmove director of property data Tim Bannister says: “Our data shows a stark contrast between the rental market in central areas of London and the market across the rest of Great Britain. 

“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. 

“Landlords who five years ago took a longer term view obviously couldn’t foresee the effect that Covid would have on rents, and right now they’ll be doing all they can to prevent voids and hope the drop in rents is fleeting.

“The frenzied buying and selling market is likely to be exacerbating the problem as well, as some sellers are moving into rental accommodation until they find the home they want to buy, adding further demand to already diminishing rental stock levels.”

Chestertons head of lettings Richard Davies adds: “The events of the past year have had a big impact on rents in London, with the more central areas being hit the hardest as tenants are no longer tied to their workplaces and have been free to seek the larger properties and lower prices found slightly further out. 

“As a result, 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. 

“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.”