Continuing with the theme of the rental market in London, the team at the Experience Invest blog today reports on the news that average prices in the capital have risen by 4.67% since the summer.
This means that an average residential property in London is now being rented out for over £1,467 per month. Whereas in June 2015 the average rental price for a property in London was £1,402.
The figures are according to data published by the Rentify Property Index, which draws information from 200,000 Rentify properties, as well as a selection of publicly available data including from Zoopla. Rentify say this increase could be seasonal, and due to students returning to university or college.
However, the increase in rental costs is very much location-specific, and in some areas rents are declining. The analysis suggests that people are looking to rent homes in outer London boroughs where rents are more affordable.
Areas of London where rents are rising
Between June and October 2015, the largest increase in average monthly rents recorded in London was in Greenwich, where average rents are now £1,397 per calendar month, an increase of £338 per month. Other London boroughs including Brent, Newham, Lewisham and Lambeth have also seen uplifts in rental prices.
Top five average rental price increases
- Greenwich – rents have risen by £338 to an average of £1,397 per month
- Brent – rents have increased by £201 to an average of £1,493 per month
- Newham – rents have increased by £197 to an average of £1,378 per month
- Lewisham – rents have increased by £194 to an average of £1,305 per month
- Lambeth – rents have increased by £182 to an average of £1,617 per month
Where average rents are declining in London
Homes in Wandsworth, Kingston-upon-Thames and the City of London were among those that saw a decline in the monthly average rent prices. Rents fell by an average of £33 per month in Wandsworth and by £90 in Kingston-upon-Thames. However it was the City of London that saw the largest decline in monthly rents. These dropped by £185 per month bringing the average cost of renting a home in this part of London to £2,149.
Rentify’s chief executive officer George Spencer explains: “High cost of rent in central London is continuing to drive people away to outer boroughs in search of affordable housing. This however means that these so called cheaper locations are seeing a remarkable rise in rent due to their popularity. They are hot on the heels with central London due to strong demand.”
For more property investment news and our full range of residential properties available visit the Experience Invest website.
About Experience Invest
Experience Invest is a London-based independent property company specialising in residential investments, student property and care home investments. The company works with clients across the UK and internationally, and is regularly featured in the property news – see The Telegraph, on Yahoo Finance, and by Reuters for examples of recent articles.
Experience Invest recently announced the launch of One Wolstenholme Square, a brand new residential development in the heart of Liverpool.