According to the latest figures published in the monthly HomeLet Rental Index, average rents across the UK increased during August, compared to July, to now stand at £791 per month. London is one of the biggest gainers, seeing a rise of four per cent month-on-month and 12 per cent year-on-year. The organisation points out that this now puts rents in the capital 52 per cent above the national average.
Meanwhile, salary growth among London workers has slowed down to 2.5 per cent in the past year, with HomeLet managing director John Boyle claiming that this has left tenants in the city "feeling the pinch". He noted that the average age of tenants in the private rented sector (PRS) in London is also among the lowest in the country, commenting that this could indicate that "a shortage of social housing is impacting younger families who are turning to the PRS for accommodation".
Investors hoping to enter the London market may want to consider one of the 13 districts in the capital recently singled out by Knight Frank as regions where substantial capital value growth is anticipated. Earls Court, Farringdon, King's Cross and Nine Elms are just some of the areas where improved infrastructure and regeneration are expected to boost prices.
- Friday 16 September 2011