You are here: Home - Mortgages - Buy To Let - News -

London rents increase for first time in 15 months

0
Written by: Heather Greig-Smith
05/10/2017
London rents returned to growth in September after falling for 15 consecutive months, while the rest of the country saw stronger growth, according to the latest Landbay Rental Index.

The lender said there are signs that demand for rental accommodation could again be rising in the Capital, and that this puts further pressure on the government to follow through on its pledge to release an extra £2bn of cash for local authorities to build more affordable housing.

However, the rise in London was marginal – with rents up 0.01% in September to £1,876, compared with August. Rents are still 0.80% lower in London year-on-year.

In the UK as a whole, the average rent is up 0.73% on last September at £1,196, 0.10% higher than in August. Scotland has seen the biggest increase: 2.01% year-on-year and up 0.42% in the last month to £733. It was followed by Wales, which has seen an annual rental increase of 1.31%.

Crossrail 2

Landbay also said rental increases along the proposed Crossrail 2 route were premature as a leaked business case from TFL suggested the scheme could be delayed by a decade.

The index showed a significant uplift in tenant demand in the four and a half years since the route was announced that pushed up rents in 13 of the 15 affected local authorities, and by 21.5% around north terminus Broxbourne.

Overall in the four and a half years since the announcement was made, 13 of the 15 affected local authorities have seen notable rent rises, most notably in the North and West extremities of the line, namely: Broxbourne (21.5%), Enfield (13.8%), Haringey (11.4%) and Spelthorne (10.5%). (See image below.)

However, since 2016 rents have once again begun to fall. Only Enfield saw rents grow (0.4%) in the past year, although by September rents had fallen there too. Meanwhile Broxbourne (-1.75%), Richmond (-1.13%), and Spelthorne (-2.16%) are all showing signs of dwindling tenant demand.

John Goodall, chief executive and founder of Landbay, said: “News that the line may now be delayed by a decade is nothing short of a hammer blow to all those who have had the foresight to plan that far ahead.

“What’s needed by tenants, landlords, buyers, business, and builders is a clear commitment from the government that the project will be delivered in 2033 as expected. Not only to help people and businesses plan their lives ahead, but also to allow adequate time for local authorities to plug housing shortfalls before demand spirals out of control.”

Goodall added that the government’s £2bn social housing pledge is an encouraging sign but could and should be linked to the UK’s infrastructure plan.

image003

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

  • According to @YourMoneyUK the #Govt is considering a Care ISA’ which would be exempt from #inheritancetax. Could th… https://t.co/hPVZZfdyDr
  • RT @unitetheunion: “We need tough action against unscrupulous debt collection agencies who prey on people’s misery to ramp up the debt thro…
  • RT @unitetheunion: “We need tough action against unscrupulous debt collection agencies who prey on people’s misery to ramp up the debt thro…
Read previous post:
A row of terraced houses overlooks a view of London
Downsize vs equity release: what’s the right decision for you?

With the surge in property prices and growth of equity release, homeowners may be torn between downsizing and a lifetime...

Close