Greater London rents more than double North East costs

Published by Max Salsbury for 24dash.com in Housing and also in Communities, Finance

Greater London tenants are paying more than double for their rents compared with those living in the North East, according to new figures.

The December Homelet Rental Index reveals that London rents increased by 6.9% over December 2011, to £1,212 per month.

In the same period, North East costs rose by only 0.8%, to £523 per month. The region remains the consistently cheapest place in the UK to rent a home.

Average rents in the 12 areas that make up Greater London range from £779 per month in Dartford, to £1,689 in West London.

West London tenants are paying an enormous 223% more than those in the North East.

Across the UK as a whole, rents rose by 4.7% between December 2011 and 2012 to £782 per month.

However, tenants’ earnings dropped in the same period by 0.3% to £27,799 a year.

Ian Fraser, HomeLet’s Managing Director, said: "The high level of overseas investors in London’s property market has helped to drive property prices up, particularly for residential homes in the more exclusive boroughs. But the growing demand for rented property throughout the Capital is really driving an increase in rental values – with rising rents offering an increasingly attractive return for those who have the capital to invest in property.

"As confidence and demand in the private rented sector grows, so will overseas investment, and landlords will continue to maximise the return from their properties. However, this may also increase the purchase value of homes within these areas, and consequently affect people’s ability to become a home owner…thereby driving demand for rental homes, and average rents, even higher.

"The Government has pledged to ease this situation by offering funding and introducing schemes to aid the development of new homes - specifically for private rent. Until then though, it appears rents in Greater London will continue to increase at a much higher rate than in other regions, such as the North East - and those who want to live in desirable locations, due to employment for example, may have to remain in rented homes due to inflated property values pricing them out of the ownership option."