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London rents more than double rest of UK - new housing minister speaks

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London rents more than double rest of UK - new housing minister speaks

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

Key players move to position private rented sector as tenure of choice to solve housing crisis Key players move to position private rented sector as tenure of choice to solve housing crisis

For the first time in recorded history, the average cost of renting a home in Greater London is more than double the cost across the rest of the UK.

Those looking to rent in the capital are currently facing an average cost of £1,412 a month, compared to an average of £694 elsewhere in the country.

Rents in the UK's private rented sector have increased 6.3% in the last 12 months, with the average UK-wide monthly rent now standing at £862. In London alone, prices have soared by 11.2%.

According to June's Homelet Rental Index, the North East of England, Scotland and Wales currently offer the most affordable rent when comparing rental prices to average tenants’ incomes in the regions.

The crazy rises even provoked a response from the brand new housing and planning minister, Brandon Lewis, though he offered little of interest.

“While inflation currently stands at 1.9%, nationally rents have risen by just 1%," said the MP.

He went on: “Building more rented housing will be the most effective way of controlling rent levels in the future – excessive red tape would just push up rents and reduce choice.

“That’s why we’re investing £1 billion in our build to rent fund, which is on track to have work started on 10,000 newly built homes specifically for private rent.”

According to Homelet, average UK rental costs have risen so quickly that Greater London, the South West and the South East of England are "pushing the bounds of affordability".

Martin Totty, Barbon Insurance Group’s chief executive, has commented on the report for some reason, saying: “The private rental sector continues to show strong growth with rental values increasing year on year across the country, with little exception. Although average incomes have also been rising, there are parts of the country where we are seeing affordability getting tighter.

"As a rule of thumb, for a rental property to be affordable, a tenant’s gross income must be at least two and a half times his or her annual rent. Our data shows that rents in London have pushed beyond that boundary, with the South East and South West of England close behind.”

Region

Annual variation in average rental value

Average rental value per year

Average tenant’s income

Affordability index rating

 

Greater London

11.2%

£1,412 (£16,944)

£37,800

2.23

East Anglia

6.4%

£781 (£9,372)

£28,900

3.08

Wales

4.7%

£584 (£7,008)

£24,300

3.47

South West

4.6%

£813 (£9,756)

£24,900

2.55

South East

4.4%

£863 (£10,356)

£30,300

2.93

West Midlands

4.3%

£625 (£7,500)

£23,400

3.12

North West

2.9%

£665 (£7,980)

£24,100

3.02

Yorkshire & Humber

2.2%

£600 (£7,200)

£22,700

3.15

Northern Ireland

2%

£567 (£6,804)

£23,800

3.50

East Midlands

0.2%

£579 (£6,948)

£23,300

3.35

North East

-2.3%

£507 (£6,084)

£22,700

3.73

Scotland

-3.8%

£578 (£6,936)

£24,200

3.49

Overall

6.3%

£862 (£10,344)

£29,000

2.8

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