London calling young as rents in the British capital drop for the first time in six years

Moving to London is something of a rite of passage for many young Australians – and so here is the good news: it has just become a little cheaper to live in The Old Smoke.

Rental prices have fallen in London — one of the most expensive cities in the world — for the first time in six years.

Leasing costs are marginally down, but job opportunities are predicted to be on the up, following a slump in Aussie immigration numbers.

Compared to last year, average residential lets are commanding £7 ($12.30) less a month; a humble sum, but enough for a couple of pints.

Some London agents have blamed landlords’ Brexit-induced financial jitters.

Property experts said most expatriates, from Mayfair executives to bar staff in Shepherd’s Bush, rent rather than buy.

But where Earls Court was once nicknamed Kangaroo Valley, fewer Aussies have been making London home.

Australia’s High Commissioner to the UK and former foreign minister Alexander Downer told the ABC in June that Brexit could make it easier Australians to live and work in London, viewing the Eurozone split as a chance to renegotiate a crackdown on working visas.

The number of Aussies working in the UK declined 40 per cent since 2008, Mr Downer said.

“That has partly been for economic reasons, but there are all sorts of visa restrictions on Australians now, and whether there will be opportunities to change that when the new arrangements come into place, we simply don’t know, but we should try in any case and that is what we will do,” he said.

Celebrity hair and makeup artist Alisia Ristevski moved from Melbourne to London, where she works for major TV network Sky, in September last year.

The 31-year-old, who also runs her own hair and makeup business, Littledollface, rents in Fulham, in the city’s south west, but has also lived in Maida Vale.

Ms Ristevski said most of her friends were in similar circumstances: young professionals living within their means.

She said she would not necessarily be swayed to stay on in London if rents remained cheaper, because she was there for the experience.

“I am in a share house with four others, (and) for the room I am in and the location I have heard that it is quite reasonable, but it is very expensive,” she said.

“We aren’t here working in pubs like most Aussie backpackers are here at 21 years old.

“We are all in our early 30s, successful people working in our chosen careers so we are all living in places that suit our lifestyle and budgets.

“I haven’t noticed rental prices drop too much, (but) I have found that there is a lot more available for rent in areas where it is more difficult to find good places.”

Former Austrade economist and author Tim Harcourt, from the University of New South Wales’ Business School, said there were strong job prospects for young Australians in London.

“In many cases, the EU was a weight holding them (Britain) back,” Mr Harcourt said.

“Britain can be a lot more aggressive now, and I think in some ways London’s institutions are going to strengthen, and is it probably likely they will do a free trade deal with Australia – that could lead to more opportunities for young Australians.

“Young Australians are always very welcome in London, and they do very well; they are not just pulling pints are Earls Court pubs. They are actually doing very well in the professions, in advertising, architecture and journalism. I think the professional job opportunities for Australians will be very strong.

“It could be now that there are more blue collar jobs available, if there is less European immigration.”

London-based buyers advocate Jo Saadie said South Kensington, Chelsea, Pimlico, Notting Hill, Hampstead, Highgate were areas popular with expats due to the quick commute into the CBD.

But Ms Saadie, of Nicole Jacobs Property, said the cost of living in London could negate any savings on rent.

“While rents may have fallen or are seemingly quite negotiable, if you are earning GBP your salary as an absolute number, not based on currency conversion, could be significantly less than what you may have been earning at home,” she said.

“Whatever way you look at it, the cost of rent and what you get for that is a huge adjustment for most Australians, whether they are looking to share a house or whether they are have a family and are looking to rent an entire home.

“This rental ‘affordability’ may also be short lived given overall UK wage restraints and the introduction of investor stamp duty which impacts on buyer sentiment. This in turn leads to sustained or increased pressure on the rental market overall as people can’t afford to buy.”