Average monthly rents in London soar to £1,500

Affordable housing shortage fuelling boom in rental market

The cost of renting property in London is rising and rising with no end in sight.

The average cost of renting a flat or house has now hit £1,500 a month, with charities warning that tenants are increasingly unable to meet landlords’ prices.

The figures, which come from a survey by HomeLet.co.uk show that rents in London are now double the national average of £751.

In London prices were 10.7% higher in May 2015, compared to May 2014.

The survey also shows that average tenant incomes have also risen, though not by anywhere near the same percentages, with incomes up 2.4% compared to the same period last year.

The rapid growth is indicative of the housing shortage facing Britons. As competition in the property market grows, pushing prices up and out of reach for many, this has created searing demand for rental properties instead.

The charity Money Advice warned that a worrying trend to come out of the rising rents is the inability of tenants to keep up with payments. “The proportion of calls we were getting on rental arrears in 2010 was 6.6%. This year so far it’s 11.4%, so that’s a doubling,” the charity said. “It’s both in the public and private sector.”