If you’re a London homeowner then now’s the time to start renting out your precious property. Why? Well, the average private rent in the capital has hit £1,126, the second highest level since 2008. The rents, which are up 4.8% year-on-year, beat the national average of £743.
Rents are 1.3% higher across England and Wales than a year ago. Across the UK, rents increased up to 0.7% month-on-month in August, following a 0.2% monthly uplift in July.
The sharp increase in rents has been attributed to the weak income growth and a lack of housing supply that has forced landlords to seek new tenants.
David Newnes, director of LSL Property Services, said: “Better availability of finance has allowed some households to leave the rental market. And rents certainly felt the short-term impact of that.
“But releasing a blast of pent-up pressure to buy a home is unlikely to change the long-term trend in renting.
“Although Government schemes are helping, buying a first home is still extremely hard on the back of low salary growth.”
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