Rent in London went up 13.4% in a year
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London rental prices increased 13.4 percent in the last year as high demand from tenants was not met by supply of rental stock.
Rents in the capital also increased by 2.3 per cent in January according to the latest HomeLet Rental Index.
The average rent in Greater London now stands at £1,425 compared to £1,393 in December 2014.
Paul Glass, manager of the Hampstead branch of Day Morris Estate Agents, attributes the rise in rental prices to a shortage of property in London but says he hasn’t found the findings of the report to be true in his branch.
“We tend to find that prices stay the same”, he said. “I certainly wouldn’t say they’ve increased massively in January.”
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Scott Richards, a valuer system manager from Foxtons Hampstead branch, noticed that rental prices have gone up a little.
“Overall, I’d say there’s been a slight increase,” he said. “It has to do with supply and demand.”
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He explained that after a lull in the market in December people rush to find rental property in January.
“People put off their search because of Christmas and celebrations and then all of a sudden realize they need a place to live,” he said.
He also views the upcoming general elections as a possible reason for the increase in rental prices, as people may prefer renting over buying as they are unsure how policies for homeowners may change in the future.
“There’s a level of uncertainty that drives people to rent,” he said. The UK average increased by 11.2 per cent in 2014, but this figure is largely due to London’s rental increases. The figure drops to 5 per cent when the region isn’t included.
Northern Ireland, the West Midlands and the North East saw a drop in rent prices in January, while the East Midlands recorded the highest increase with 6.2 per cent, followed by Scotland and East Anglia with 5.7 per cent and 5 per cent, respectively.