Data from the November 2012 HomeLet Rental Index shows the average cost of renting a home in Greater London decreased by 1.4% to £1,223 per month. This is the fourth drop in as many months in the Capital, after lowering by 3.9% since August.
However, data from this month’s HomeLet Rental Index shows despite the monthly drops, the average cost of renting a home in London is 4.2% higher than the same time last year.
The dips in rents in Greater London over the past few months mirror average rental amounts around the rest of the UK, which have also consecutively lowered since August. It now costs an average of £656 per month to rent a home in the UK, excluding Greater London. However, as in the Capital, UK rents are more expensive than last year, albeit slightly less so at 2%.
Ian Fraser, HomeLet’s Managing Director, said: “Although it appears the growth in rents has slowed down – both in London and around the rest of the UK – we do normally see a seasonal dip in average rents at this time of year. The monthly drop in rents could be deceiving, but in reality, rents are still growing when compared to November 2011.
“It is now 86.4% more expensive to rent a home in Greater London than the rest of the UK. Compared with the previous two years, this has increased from 79.8% in 2011 and 61.9% in 2010. Whilst demand outstrips supply within the lettings market, this trend is likely to continue, and I believe it is only a matter of months before tenants in the Capital are paying on average twice as much rent than those living in the rest of the UK.
“The Government’s pledge to spend £5.5bn towards infrastructure investment, including roads, housing, schools, business and exports should help to alleviate this through the construction of new homes. However, until this comes to fruition, tenants will have no choice but to pay ever increasing rents.”