Continued Demand for London Property Pushes Rent Prices Even Higher

28 December 2011 Categories: News

Continued Demand for London Property Pushes Rent Prices Even Higher

The on-going inability of many London residents to save the huge deposits needed for a residential mortgage has resulted in the competition for private rental properties in the capital becoming higher than ever before. This ever-present demand has understandably had a knock-on effect on rental prices and according to November figures released as part of the HomeLet Rental Index it is now around 80% more expensive to rent in London than in the rest of the UK.

The month of November saw the average London rent come very close to £1200 per month, a figure that makes living costs in the Capital 13% higher than during the same period last year. In comparison, the average rent outside the capital stood at just £653, making living costs around 1.6% higher than last year.

When asked about the significance of the recent figures the Managing Director of HomeLet, John Boyle, said “The soaring cost of renting a home in the Capital, compared to the rest of the UK, reflects how demand for rental properties is increasing due to people’s continuing struggle to get onto the property ladder. This demand offers a fantastic opportunity for landlords and property investors who could offer a much needed supply of rental properties to the industry.

Whether rent prices are capped following the mayoral elections in 2012 or whether they are allowed to continue rising in line with demand remains to be seen. At the present time it seems that London properties are definitely an investment worth considering.