Rental prices in Greater London have reached an all-time high, and are now a massive 50% higher than the national average, new research says. Prices have risen by 12% from the same time last year (June 2010), and are now higher than ever before, according to new research by tenant referencing specialist, HomeLet.
The average monthly cost of a property in the Greater London area rose by 0.54% from £1,119 in May 2011 to £1,125 in June 2011, according to HomeLet, the market leading tenant referencing and specialist insurance company for the lettings industry.
Costs have been pushed up due to a greater demand for rented properties as people struggle to get onto the property ladder. It is also a result of the increase in number of people who want more flexibility in where they live - therefore deciding to rent, rather than commit to a long-term mortgage.
Vince Demilio, Head of Field Sales London for HomeLet, said: “The data shows rents in Greater London are increasing at a more rapid rate than all other regions in the UK. Back in 2009, rents in London we’re only 38% higher than the national average, compared to the 50% difference we’ve seen in June.”
John Boyle, Managing Director of HomeLet, said: “The soaring rental costs in Greater London are a strong reflection of how the rental industry is developing. With greater demand in areas, such as London, where there is a plentiful stock of houses, rental costs of areas where there is a shortage of properties are forced downwards as more people are left with no option but to move to where they can find a suitable rented home. With the UK’s fragile economy, it’s fascinating to see these trends emerge.”
The Greater London region in the HomeLet Rental Index includes all postcodes within the M25. HomeLet’s Rental Index Has access to the largest volume of data on agreed rental amounts in the UK includes data gathered from over 3,000 letting agents – more than any other report on the market.