The May 2012 HomeLet Rental Index shows tenants are now paying an average of £1,187 a month to rent a home in the Capital – whereas those living in rented properties around the rest of the UK are spending an average of £653 per month.
Over the last three months, the average UK rental amount (excluding Greater London) has decreased by 1% - Greater London has bucked this trend though after the region’s average rental price increased by 2.5% over the same period.
It appears the soaring rental costs in the Capital are causing more tenants to move into shared rented accommodation. May’s HomeLet Rental Index shows there are now more tenants aged 18-35 sharing a rented home than anywhere in the country.
Ian Fraser, HomeLet’s Managing Director, said: “The HomeLet Rental Index shows the overall number of tenants sharing a rented home in Greater London has increased by 13.4% since last year - which reinforces recent reports suggesting there’s been a steep increase in the number of young people and families renting a home due to being unable to secure a mortgage.
“Whilst the mounting cost of renting in the Capital may appear to have slowed down – tenants in the area are now paying a staggering 82% more to rent a home than the rest of the country, and are still continuing to face straining monthly bills.
“This month’s HomeLet Rental Index also highlights how London has the lowest amount of unemployed tenants moving into rented homes. This could be linked to the Capital’s housing benefit cap that may have caused those relying on Local Housing Allowance to move out of the area to find cheaper homes.
“In addition, the numbers of those who are self employed or receive money through independent means has increased. With the development of the Olympic village and proposed ongoing regeneration of the surrounding area, this could suggest those struggling to find relevant work in other areas have headed to Greater London for building employment opportunities.
“However, employment in the Capital will also lead to increased living expenses, and it will be interesting to see how many tenants are able to sustain these escalated costs.”