Hometrack report shows London is in a rental class of its own

01 May 2012 Categories: News

Hometrack report shows London is in a rental class of its own

A recent report conducted by Hometrack has shown the existence of two very distinct rental markets within theUK…namely ‘London’ and ‘the rest of theUK’. It seems that rents inLondonare now virtually double that of similar properties elsewhere in the UK, and that while rental growth during 2011 was lower than that of 2010 in all regions, inLondonit was up by nearly 10%.

Figures taken from the report show that 22% of typical two-bed properties in London achieve monthly rental amounts in excess of £2000, but outside London only 4% of comparable properties achieve half of this amount.

Going on, the core market inLondonaccounts for 37% of private rentals and achieves rental amounts of between £1000 and £1500 per month. In the rest of the UK however the core market achieves rents of between £500 and £750 per month and accounts for over 50% of the rental sector.

According to Hometrack and the Insight Paper from which these figures are taken, the reasons for the uniqueness of London rents include the high cost of buying in the capital city and the fact that London is very much a corporate rental region…a fact that drives rents up past the norms of domestic rentals.