Rental prices have been rocketing in London, and they have now reached an all-time record – which is not good news for tenants desperate for a place to live. But why are rents going up so much? And will they keep on rising or is there an end in sight? Here's a look at what's going on.
Average Rent In London Is Now £1,301
Renters in London are facing the most expensive rental market ever. Many people in London have to rent because they are unable to buy a property in the city, but now they are suffering even more because of the high rental prices.
The average rent in London is now a staggering £1,301, according to figures from Your Move and Reeds Rains, which were reported in City A.M. To put this into perspective, this marks an 11.6 per cent rise from last year, while across the UK rents have risen by about half as much (6.3 per cent).
The Office for National Statistics (ONS) also released statistics showing that Londoners are now paying rents that are 4.1 per cent higher than last year, compared to an average of 2.7 per cent across Britain.
The Independent also reported on figures provided by the ONS that claim London rents have now gone up over 20 per cent in just five years, which compares to 12.5 per cent across the country. Some places in the UK have seen far lower rises, with the north east seeing rises of just 3.4 per cent in five years.
What Is the Reason Behind the High Rents?
Many tenants are struggling with higher rents, and they are rightly worried about how high the rents might continue to go. The main problem in London is simple: demand is higher than supply. Because availability is now lower, there are simply not enough properties available, and this is pushing the prices up fast.
Unfortunately, there is no sign of this trend reversing, so it looks like tenants in London are going to have to get used to paying a large amount of money in rents over coming years.
Always Use a Reliable Estate Agent
The situation can be stressful for tenants in search of a London property to live in. Finding a place to live can be difficult at any time, but when the prices are so high it becomes even more important to find a place that is right for you.
One thing you can do is to always use the services of a trusted estate agent with an established reputation. Competition for rental properties may be high, but you can take a lot of stress out of looking for a place to live by using an estate agent you can trust.
This becomes even more important when stories like this one in the BBC are being reported. This article highlights the illegal practice of 'ghost listings' where unscrupulous estate agents list properties for rent that are not actually their own – sometimes the properties are not even for rent – purely to attract tenants.
It is therefore more important than ever for people searching for a place to rent to use the services of a trusted estate agent to avoid such practices.
Be Quick to Act
As well as using a trusted estate agent, you should also be quick to act when you find somewhere that looks suitable. Good properties go very quickly now that demand is so high, so don't miss out and be prepared to act quickly when you find a place that looks right for you.