London rents have risen by 13% in the last year
Over the last year, the cost of renting accommodation in London has increased by 13%, which may speak about the profitability of buying apartments in the capital of Great Britain for subsequent renting. At the same time, rural areas in the country are becoming more affordable to live in compared to 2021.
The situation in the UK real estate market continues to change. In 2020-2021, against the backdrop of coronavirus restrictions, people tended to move to the countryside and rental prices rose. Now, renting there is once again becoming cheaper than in the city. Prices have risen by just 6.6% or £67 in the past year.
In cities, rental prices continue to rise. For example, in London, the price tag has risen by 13% or £230. But this is still less than in the period from June 2021 to June 2022, when prices rose by 17.6% or £273 over the year.
The situation in the UK real estate market continues to change. In 2020-2021, against the backdrop of coronavirus restrictions, people tended to move to the countryside and rental prices rose. Now, renting there is once again becoming cheaper than in the city. Prices have risen by just 6.6% or £67 in the past year.
In cities, rental prices continue to rise. For example, in London, the price tag has risen by 13% or £230. But this is still less than in the period from June 2021 to June 2022, when prices rose by 17.6% or £273 over the year.
Published on 16.08.2023
The average cost of renting a home in London is now £2,005. The capital of the UK is one of the most expensive cities to live in the country by this indicator. Similar figures are recorded in several areas of Scotland.
The housing affordability indicator has also changed. In 2020-2021 it was difficult to find a house in the countryside. Today, exactly the opposite situation is developing in cities, especially in London. However, due to the limited supply in the capital's real estate market, rental price growth may slow down in the near future.
The rate of rent growth varies greatly between London boroughs. For the fifth month in a row, rents in the Newham area have grown faster than anywhere else in the capital by 16.5%. The slowest price growth is in the boroughs of Kensington and Chelsea — by 11% over the past year.
Against the backdrop of rising rental prices in London, there may be another exodus of residents to the suburbs and countryside. Given the well-developed transportation infrastructure and the introduction of remote working by many companies, the countryside may once again become a popular place to live.
The housing affordability indicator has also changed. In 2020-2021 it was difficult to find a house in the countryside. Today, exactly the opposite situation is developing in cities, especially in London. However, due to the limited supply in the capital's real estate market, rental price growth may slow down in the near future.
The rate of rent growth varies greatly between London boroughs. For the fifth month in a row, rents in the Newham area have grown faster than anywhere else in the capital by 16.5%. The slowest price growth is in the boroughs of Kensington and Chelsea — by 11% over the past year.
Against the backdrop of rising rental prices in London, there may be another exodus of residents to the suburbs and countryside. Given the well-developed transportation infrastructure and the introduction of remote working by many companies, the countryside may once again become a popular place to live.
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Amit Seth
Managing Director