London tenants are now spending an average of £1,876 per month on rent, while renters outside the capital are paying £758 a month on average, according to the latest Rental Index Report from Landbay.
Since September last year, average rents in the UK have risen by 0.73% to £1,196. In England, rents were up by 0.64% to £1,227 per month, while prices dropped marginally, by 0.80%, in London.
In Northern Ireland, rents rose by 0.40% to an average of £561 per month, while they increased slightly in Scotland, to an average of £733 a month, following annual growth of 2.01%. Meanwhile, in Wales, the average rent was up by 1.31%, to £640.
London tenants are now spending an average of £1,448 per month to rent a one-bedroom property, £1,920 for a two-bed property, and £2,684 for a three-bed. Conversely, tenants renting properties in the rest of the UK are paying an average of £599 a month for a one-bed, £715 for a two-bed, and £825 for a three-bed.
As rents in London grow by an average of 0.01% on a monthly basis – the first growth in 15 months for the capital – the Government has announced a new change that could see it resume course in the opposite direction. Crossrail 2, the £31 billion infrastructure project set to speed up journeys between north and south London, could be delayed by a decade, from 2030 to the early 2040s, due to insufficient funding.
Since the plans for Crossrail 2 were first launched, the effects on rent prices across the route have been significant. Landbay recently published a report that looks into how rents have fared across the route, and what will happen now. Read it here.
Known for being one of London’s prime financial districts, the City of London is one of the busiest central parts of the capital. With an average change of -1.53% since September 2016, rents here have been pulled down with the widespread drop in values across the rest of the region.
However, since last month, growth has picked up to a healthy increase of 0.84%. This means that the City of London is the only London borough to feature in the top 20 locations in England with the highest monthly increase in rents. In fact, the borough takes third place after two parts of Scotland – a country that has recently dominated the UK tables in terms of rent price growth.
Reasons for this could include London’s impressive standing as one of the leading cities in Europe for technology-based industries and the particular inclination towards the City of London as a favourable spot for businesses.
With rents so high across the country, particularly for London tenants, it’s more worthwhile than ever for landlords to protect their rental income. If your tenants struggle to pay the rent, it’s essential that you still get paid – Rent Guarantee Insurance does just that. Don’t get caught out if your tenant can’t pay the rent – Get a quick quote here: https://www.justlandlords.co.uk/rentguaranteeinsurance