With such intense spotlight on London’s rental market in these past months, the news that it will cost you double the amount to rent in the capital compared with the rest of the UK may not come as a surprise.
The latest figures from the HomeLet Rental Index’s Study reveal that the average monthly rent is £1412 in London, in contrast to £694 for the rest of the UK, once London is taken out of the equation.
Martin Totty, Chief Executive of Barbon Insurance Group, said, “As a rule of thumb, for a rental property to be affordable, a tenant’s gross income must be at least two-and-a-half times his or her annual rent.
“Our data shows that rents in London have pushed beyond that boundary, with the South East and South West of England close behind.”
These statements show how a Londoner on an average wage may be forced out of the city due to the ever-escalating rental figures.
On the other hand, Housing Minister Brandon Lewis, believes that private rents are actually falling in real terms.
“While inflation currently stands at 1.9%, nationally rents have risen by just 1%,” he said.
“Building more rented housing will be the most effective way of controlling rent levels in the future – excessive red tape would just push up rents and reduce choice.
“That’s why we’re investing £1bn in our Build to Rent fund, which is on track to have work started on 10,000 newly built homes specifically for private rent.
Whether you’re a contractor or landlord, the above news should be positive for you. Rising rents mean more income for landlords, and the Build to Rent scheme means more work for contractors.
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