Date Published 15 November 2012
Tenants in London are now paying almost one third more in rent than three years ago, after a 6% rise in the last year.
According to HomeLet, average rents in Greater London are now £1,240 per month. This means renting a home in the capital is 16% more expensive than in October 2010, and 32% higher than October 2009, when average rents were £940 per month.
In contrast, the average cost of renting a home around the rest of the UK increased by 7% between 2009 and 2012 from £619 to £663 per month.
On average this means tenants in the capital are now paying almost 90% more than those living in rented homes around the rest of the UK.
Ian Fraser, HomeLet’s managing director, said: `Our data shows that on average tenants outside of London are now paying £44 more per month for a rented home when compared to 2009, but in contrast tenants in London are paying an average of £300 more per month.
`Average rental prices in Greater London appear to be far more buoyant than the rest of UK. However, the continued increase in achieved rental values highlights the growing pressures on the supply and demand of rental stock in the capital.
`People relocating to Greater London for employment are helping to drive the increasing demand for rental properties, and are subsequently driving up average rents. With a lower volume of people buying their own homes in the capital because they’re priced out of the market, the private rented sector within Greater London is being increasingly strained.
`London and the South-East have the highest volume of private sector enterprises in the UK. As the competition for jobs and housing increases, the difference between average rental prices in the capital and the rest of the UK will continue to grow.`
HomeLet bases its data on rental amounts agreed – at which point it checks out and insures tenants – as opposed to asking price rents.
See also next story on the booming London rental market. But can it really last?