Renters in London currently pay nearly a third more rent than three years ago, following a 6% increase in the past year.
Average rents in Greater London are now £1,240, revealed HomeLet.1 Therefore, tenants are paying 16% more than in October 2010, and 32% more than in October 2009, when average rents in the capital were just £940 a month.
Tenants in London Pay a Third More than Three Years Ago
The gap between renting in London and elsewhere in the country is emphasised by the 7% rise from 2009 to 2012, from £619 to £663 per month.1
Shockingly, this means that tenants in London now pay around 90% more than renters in other parts of the UK.
HomeLet’s Managing Director, Ian Fraser, says: “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 the 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.”1
HomeLet’s research is based on the rental prices agreed, not the asking prices.