London rental rates soar ahead of UK average

Rental rates in Greater London have soared much faster than the rest of the country over the last year to reach record levels, according to research.

The average monthly rent for a property in the capital now stands at £1,260 per month, the most expensive it has ever been recorded at, the HomeLet Rental Index shows.

London’s rental rates went up by 8.4% over the last 12 months, while tenants in other parts of the country experienced minimal increases or falls in some cases.

East London saw the largest increase in average rents over the last year, going up by 13.3% to £1,250 per month, although it remained the cheapest area of the capital to rent in.

South-west London was the most expensive area of the capital, with average rental rates of £1,830 in July, some £67 higher than in the same month last year.

Dartford was the cheapest for tenants of the boroughs included in the research. The average property cost £764 per month in Dartford in July, down £24 on the same time last year.

HomeLet managing director Ian Fraser said: “Despite most UK regions either seeing a decrease or minimal increase in rental amounts, the overall average cost has risen by 2% over the past 12 months.

“The main driver behind this increase is the cost of renting a home in Greater London that has increased by 8.4% – more than any other region – throughout the year.

“Renting a home in Greater London now stands at £1,260 a month – the highest it’s ever been, and a massive 85% more than the rest of the UK. Costs do generally increase and peak over the summer months.

“If 2012 follows this trend, then by September, renting a home in the capital will be more than double than anywhere else in the UK.”

The gap between rents in London and the rest of the UK is greater than ever.

Although the average wage of a person living in London is 70% higher than a worker’s pay packet in the North East, property in the capital is 135% more expensive.