Thursday, August 16, 2012

London’s rental rates went up by 8.4% over the last 12 months

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.

Posted by sandra @ 11:07 AM (1286 views)
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3 thoughts on “London’s rental rates went up by 8.4% over the last 12 months

  • This is insanity the average wage in London is only around £34k (ONS per google) so net that is say £25k, take off £15k rent your left with £10k. That won’t be enough to cover your season tickets soon. I can see why all the low paid jobs are done by immigrants who live in garden sheds and sleep 10 to an apartment.
    I was in London yesterday and it is quite clear what the problem is, you have too many people, even off peak the tube is rammed and pavements are impassable. Even if they built 300,000 more homes on the outskirts of london the transport system is too overcrowded already to cope. UK Gov needs to lead by example and relocate ALL non essential jobs out of London to areas where offices/housing/staff are much cheaper. In addition tax breaks need to be put in place to encourage big businesses to relocate.

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  • mark wadsworth says:

    Bankster: ” the average wage in London is only around £34k (ONS per google) so net that is say £25k, take off £15k rent your left with £10k.”

    That’s the whole point, isn’t it?

    There are plenty of studies etc comparing local wages and local rents or local wages and house prices, and if you do the calculation net wages minus rent/mortgage, it always ends up at the same figure.

    i.e. Low wage area, average wage £18k, net wage £15k, average rent £5k, you’re left with £10k. That £10k is what we might term “the basic minimum”.

    It’s Ricardo’s law of rent – people will move to where the gap is highest between net wages and rents, so that gap is constantly being competed downwards towards the “basic minimum”, i.e. wages get bid down or rents get bid up. The entire superficial advantage of higher wages is soaked up in higher rents and higher house prices (because they can’t move and can’t be competed away).

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  • nice to see that the largest increase was in East London. Hmm i wonder how this number is composed. Mean? Median? Im going for mean and why would that make a difference?

    Ok well we all know the stories of people trying to make a fast buck from an olympic let. Although this – we understand – was effected in less cases than originally thought, some properties were let on this basis. So the question is where those included in the numbers? I have no clue but i wonder if the guys at London Loves Business do either?

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