Rents in London 80% higher than rest of UK

Posted by Lucy Wooldridge

London lettings agents are seeing an unprecedented level of demand from tenants for their list property, new figures suggest.

According to the latest HomeLet Rental Index, an increase in demand for rented properties in London has seen the cost of renting a home in the capital soar to become 80 per cent more expensive than the average for the rest of the UK - the largest difference ever recorded.

While rents across the UK have increased in recent months, they have risen far more quickly in London than anywhere else, said HomeLet.

In November, rents in London increased to an average of £1,177 per month, whereas the average cost of renting a home outside the capital decreased over the same period to £653 per month.

It means rents in London are now 13 per cent higher than at the same time last year, while in other UK regions this figure is just 1.6 per cent.

John Boyle, managing director of HomeLet, predicted this trend could be set to continue into next year.

"The soaring cost of renting a home in the capital, compared to the rest of the UK, reflects how demand for rental properties is increasing due to people’s continuing struggle to get onto the property ladder," he said.

"Combined with the current eurozone issue, this economic uncertainty could result in the demand for rental properties increase, and cause rental amounts to soar even further."

With rents at such high levels, buy-to-let properties could represent a more attractive investment than ever.

"This demand offers a fantastic opportunity for landlords and property investors who could offer a much needed supply of rental properties to the industry," said Mr Boyle.

It follows a recent prediction by the Association of Residential Letting Agents that 2012 could see an increase in tenants falling into arrears because of rising rents and stretched consumer finances.