Rents in the capital up 32% on 2009
The October 2012 HomeLet Rental Index shows average rents in Greater London increased by over 6% since October 2011 to reach £1,240 per month.
This means renting a home in the Capital is 16% more expensive than in October 2010, and a significant 32% higher than October 2009, when average rents were £940 per month.
On average tenants outside of London are now paying £44 more per month for a rented home when compared to 2009, but in contrast tenants in London are paying an average of £300 more per month.
In contrast, the average cost of renting a home around the rest of the UK, excluding Greater London, increased by 7% from 2009 to 2012 (from £619 to £663 per month).
On average this means tenants in the Capital are now paying almost 90% more than those living in rented homes around the rest of the UK.
Ian Fraser, HomeLet’s managing director, said: “People relocating to Greater London for employment are helping to drive the increasing demand for rental properties, and are subsequently driving up average rents.
“With a lower volume of people buying their own homes in the Capital because they’re priced out of the market, the private rented sector within Greater London is being increasingly strained.”
As competition for jobs and housing increases, the difference between average rental prices in the capital and the rest of the UK is said to continue to grow.