Thursday, July 7, 2011

London rents '50% higher than national average'

Survey of 3,000 national letting agents show rents rose by 0.4% in June, but by 0.54% in the capital

Tenants in London pay 50% more in rent than the national average, according to the HomeLet Rental Index.

The survey, which collects data from 3,000 letting agents around the UK, found the average rent increased slightly by 0.4% in June to �750, but rents in Greater London rose by 0.54% to the record average level of �1,125. Rent in London has risen by 12% in the year to the end of June.

Vince Demilio, head of field sales in London, said: "Back in 2009, rents in London were only 38% higher than the national average, compared to the 50% difference we've seen in July. This is something we can expect to continue in the near future with the city hosting next year's Olympic Games."

But the biggest monthly increase was in the north-west where rents rose from �586 in May to �621 in June ? a 6% jump.

Year-on-year, most parts of the UK have seen rents rise ? the only area to see a fall in agreed rents was the east Midlands.

However, while tenants' average incomes have also risen by 3.7% over the year, it dipped slightly in June to �27,373 from �27,494 in May. The average income in Greater London is �38,299 ? 40% higher than the national average.

Heidi Abbott, sales, operations and marketing director for the organisation, said: "Over the past year, as rents have remained high, younger 'first-time renters' with lower incomes have been staying at home longer because they can't afford to rent, which is similar to the situation we've seen in the sales market over the past few years."

Nevertheless, research published by the communities and local government department shows the number of people renting privately owned accommodation in England has soared by 55% in the past six years.


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Source: http://www.guardian.co.uk/money/2011/jul/07/london-rents-higher-national-average

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