Prices have risen by 12% from the same time last year (June 2010), and are now higher than ever before, according to new research by tenant referencing specialist, HomeLet.
The average monthly cost of a property in the Greater London area rose by 0.54% from £1,119 in May 2011 to £1,125 in June 2011, according to HomeLet’s research.
Costs have been pushed up due to a greater demand for rented properties as people struggle to get onto the property ladder. It is also a result of the increase in number of people who want more flexibility in where they live – therefore deciding to rent, rather than commit to a long-term mortgage.
Vince Demilio, head of field sales London for HomeLet, said: “The data shows rents in Greater London are increasing at a more rapid rate than all other regions in the UK. Back in 2009, rents in London were only 38% higher than the national average, compared to the 50% difference we’ve seen in June.”
John Boyle, managing director of HomeLet, said: “The soaring rental costs in Greater London are a strong reflection of how the rental industry is developing. With greater demand in areas, such as London, where there is a plentiful stock of houses, rental costs of areas where there is a shortage of properties are forced downwards as more people are left with no option but to move to where they can find a suitable rented home. With the UK’s fragile economy, it’s fascinating to see these trends emerge.”