London Rents Reach New All-Time High
Tenants in London are now paying an all-time record high in rent as the shortage of property in the capital continues to push up rents.
According to the rental index published by Rightmove, the average rent in London is now £2,119 per month.
The rents have risen by 4.2% over the last 12 months and over the last 10 years, they have risen by 45%.
In contrast, the average rent across Great Britain rose by 2.4% over the past 12 months and over the last decade, they grew by just 24%.
‘Lack of properties coming to the London market’
The commercial director at Rightmove, Miles Shipside, said: "There has been a lack of properties coming to the London market over the past 18 months, and if that keeps feeding through, then there will be another new record for rents."
He added that supply is being constrained by a lack of new landlords and the trend for tenants to remain longer in their home.
Mr Shipside said: "Tenants are unlikely to swap a current rental for another as their options are likely to be more expensive than remaining with their landlord."
One-in-three renters say they will never buy
Meanwhile, a survey has revealed that one in three renters say they will never be in a position to afford to buy their own home.
The findings from energy saving blinds firm Duette found that 33% of the 2,300 tenants they questioned believe that they will never stop renting their home in future.
The research also reveals that the flexibility that comes with renting is another major reason why tenants have no plans for moving onto the property ladder.
The research also highlights that 63% of tenants are happy in their current rental property - though many say they will be looking to move at some point in the future.
Tenants are more interested in saving for holidays
However, research from Paragon reveals that tenants are more interested in saving for holidays than they are for a home deposit.
Men are, according to the findings, saving £111 per month on average, with women saving £91.
Around 24% of tenants say they are not saving at all and the main financial goal for tenants is to go on holiday for 33%.
The chief executive of Landbay, John Goodall, said: "It is widely assumed that tenants are waiting until they can afford to buy has been proved wrong. Renting offers a disposable income which can be used to fund a lifestyle they want - whether that's preparing for retirement or having a lavish summer holiday."