Greater London Rent Rises for the First Time in 4 Years
Recently, London s annual rent increased to its highest rates since 2014. Rent prices in Greater London increased to an average of £2,000 per month in the second quarter of this year. It has caused a ripple effect for the rest of London s annual rental prices.
It s important to note that the overall housing market in the capital is relatively healthy. In fact, Rentman recently discussed that home prices were actually dropping in London. The demand for property can be attributed to the increasing number of foreigners in the city, and many of them have set up shop because there s money to be made in the bustling city. Lottoland reports that the London remains a major financial hub with the highest amount of millionaires in the world. The city is a popular destination for expats seeking a home in one of the most exciting cities in the world. The cost of living in the city is high, but many people are still looking to buy houses because they can handle the prices. If renting is the preferred option though, an 85-sqm flat in an upscale area of London can set you back £2,399 per month. A unit of the same size in a normal area of the city comes at £1,746 per month.
The increase in rent is mainly due to a lack of new rental properties appearing on the market. As opposed to houses for sale, the supply of rental units in the city has been decreasing steadily over the last couple of years. It was down by 3.5% in 2017, which escalated annual rental rates by 3.4%.
Furthermore, the time between putting up a property for rent to signing the lease has always been longer in the capital, compared to other cities. The average window from listing to signing takes on average 40 days. In comparison, the same process in cities such as Bristol, Stirling, and Ashford take only 22 days on average.
Of course, higher rentals should not be a reason to scare off potential tenants looking to move, or even stay in London. There are tried-and-tested methods to get around pricey rental properties such as sharing with other people. Property Wire recommends splitting the rent between four people, because that will make the monthly rent per person more affordable than the average rates.
Just bear in mind that this also comes with an additional condition: the unit should have a rental rate similar to areas like Bexley. The average monthly rent for a four-bedroom house in this borough is £1,633.52, which becomes £408.38 per person if divided into four. That s a lot lower than spending £629 a month for a single room in London. If you are going to live in the capital, take your time in looking for rental properties that suit your needs. Be on the lookout for new listings, because units in the lower end of the price range usually get snapped up pretty quickly. And it goes without saying that you shouldn't make any impulsive decisions even if the rent is aligned with your personal budget. You need to vet the landlord thoroughly as well. In another Rentman article, a system to identify rogue landlords which was set up by Mayor Khan was discussed. If the rental property owner's name can be found on the Rogue Landlord Checker, it's best to look for another option.