The cost of renting in London is rising, survey finds

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11th November 2015 15:10 - Housing

According to HomeLet’s rental index for October 2015, those who rent in London are paying 7.5 per cent more per month than they did during the The cost of renting in London is rising, survey findssame time last year.

This percentage is much higher than the rate of which wages are increasing at, with those in London earning just 1.7 per cent more than they did last year, meaning that a greater proportion of wages are being spent on rent.

In the United Kingdom, affordable housing is defined as 35 per cent of an individual’s income after tax deductions; however, the English Housing survey discovered that a large proportion of Londoners are putting nearly 74 per cent of their salary towards rent.

As expensive rental prices do not leave much disposable income for many people in London, 54 per cent said that they were not putting any money away to save up for a deposit, however, 71 per cent of the renters said that they would prefer to own their own home than rent.

The survey also discovered that when choosing a property, price was the main concern, with 86.6 per cent of tenants saying that it was more important than crime rates, commute times, parking, public transport, nice surroundings and local amenities.

Even though the number of families are increasing, 61.7 per cent said that local schools were not important when deciding where they are going to rent a property.

In the United Kingdom, the average monthly rate for renting a property is £997, up 9.7 per cent since October 2014. Outside of London, Scotland and East Midlands experienced the fastest rising rent, a rates of 9 per cent and 5.9 per cent respectively.

A spokesperson for C.H. Peppiatt, a leading estate agency in London, Ben Felfeli, said of the research findings:

“Rents in the borough of Camden have definitely gone up around that much. For example, we were letting a one-bed for £380 last year; this year we let it for £410.

“It’s a simple supply and demand. Property prices have gone up so people can’t afford to buy, while many existing tenants are staying put. Demand is high so landlords are putting rents up, partly because they can, partly because agents provide comparable rents in the area and advise clients to go with the rest of the market in the area. Also, there are a lot more landlords so letting has been a lot more competitive. Landlords are investing more in their properties to make them higher quality.”

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