London Rents 108pc Of Average
Rents in London have risen by 7.7pc in the past year to £1,560 a month – making them more than double the average rate in the rest of the UK.
Excluding London, the UK average is currently £749 a month.
Scotland’s rents have risen by 9% this year, the highest rate in any region across the UK.
Three regions have experienced lower rent rates this year. East Anglia (-1.2pc), the North West (-4.9pc) and Northern Ireland (-2.1pc) all have lower prices for new rental properties.
Rents and house prices alike are increasing faster than wage growth – it just happens to be that renting is more affordable than buying a house, which is why home-ownership is on the decline and set to continue. In fact, Homelet found that 64pc of 15,000 tenants didn’t expect to fund a house deposit in the near future.
Tenants are now having to prioritise the price of their rental property over other factors such as location and commuter distance – even though they are expected to pay over £45,000 in rent in the next five years.
Some commentators claim things are going to get worse. According to Labour’s London Assembly housing spokesperson Tom Copley, basic London rents will rise £2,000 a month by 2020.
Three-and-four bedroom homes have already broken the £2,000 barrier, but a one-bed property could reach £2,010 a month by 2025 if inflation continues to rise.
This means that some Londoners will need to earn over £100,000 a year to afford rent by themselves.
Copley said, “The London rental market is broken. If things continue this way we are going to drive people out of the capital. It’s not sustainable.”
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