Tenants who rent a home in Greater London are now paying almost a third more than in October 2009, after the average rental amount increased once again, new research shows.
The October 2012 HomeLet Rental Index
shows average rents in Greater London increased by over 6% since October 2011 to reach £1,240 per month. This means renting a home in the Capital is 16% more expensive than in October 2010, and a significant 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, excluding Greater London, increased by 7% from 2009 to 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.
This month’s HomeLet Rental Index also shows the difference between renting a home in the Capital and the rest of the UK has increased considerably since 2010 and 2011, when the figure was 64% and 74% respectively.
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.”