London Rental Price Gap Continues to Widen

19th February 2014 posted in Property News

The price to rent a house in London is becoming increasingly varied depending on where your preference to live is. Recent figures have shown that there is now a whopping £4,411 difference in the asking rents across the capital between the cheapest and the most expensive houses. 

According to data from the Move with Us Rental Index, the most expensive borough to rent a property in is Kensington and Chelsea, where you can expect to pay a whopping £5,438 a month, whereas the cheapest rent you could expect to pay is £1,027 a month in Bexley.

This time last year the gap between the rental prices was £4,193, which means that the average price difference has now gone up by £218. The average asking rent in the Greater London area has now increased by 4.34% in the past year and by 2.98% in the past three months alone.

Research carried out by Santander has found that on average a Londoner will spend a whopping £68,200 on rent before making the move to buy their first property – this is around two thirds more than those who live in the rest of the country. On top of this, the study found that people who live in the capital spend on average nine years renting before buying a home – this is two years longer that the rest of Britain.

The most stable rental prices in London can be found in Kingston-upon-Thames, where landlords ask for an average of £1,668 which only changed a minimal 0.11% as a yearly comparison. The prices to rent a house in Lewisham have only changed by 0.08% in the last three months which is the least of all the Greater London areas.

The Director of Move with Us, Robin King, has said of the situation:

“Rents across London have always differed greatly but the gap in the current market is extremely wide. Anyone looking to rent in the capital should do their homework as rents can significantly vary from borough to borough. A tenant’s best option is to look for a borough with reasonable rental prices that are rising slowly, such as Kingston-upon-Thames and Lewisham, and that are also on a commuter route that suits their individual needs.”

Official figures from the Commons Library found that average weekly rents in London were eating up over 50% of the average local wage across 17 boroughs in London. Housing Minister Kris Hopkins doesn't think there is anything to worry about though, insisting that the Government wants a “bigger and better rental market” and has introduced a £1 billion Build to Rent fund to encourage “more institutional investment” in the area.

There does however seem to be a light at the end of the tunnel, with data from the Office for National Statistics showing that the rise in rental prices is now slowing down. The rent in London will always be more than in the rest of the country, but if you are looking for your best rental option then doing your research on the different areas and prices is key.

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