House rents in London rise at the fastest pace in October

The average rents in the UK and Wales rose by 0.4% in October, which is the slowest increase since May, with average house rents standing at £744 per month, with the highest increases seen in London rents which rose by 0.9%. Despite the slowdown, rents are still 3.4% higher than at the same point in 2011. On an annual basis, rents rose at the fastest pace in London, increasing by 7% to £1,102.

The data of LSL Property Services showcases seventh consecutive month of house rent rises, however, five areas saw property rental costs fall, with the biggest drop in the east Midlands. The five areas are Wales, Yorkshire and Humber, the North West, the West Midlands and the East Midlands.

HomeLet survey suggests that rents in Greater London are almost a third more than in October 2009. The HomeLet analysts put the average rent increase in Greater London at more than 6% since October 2011 to reach £1,240 per month. This implies that renting a home in London is 32% higher than in October 2009 when average rents were £940 per month.

Contrarily, 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.

Ian Fraser, HomeLet’s Managing Director, reasoned out the rise in rents by saying, “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.”

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