Rentals across London are flat-lining, is affordable living in the capital a future possibility?
Guest Post by Dom from the Open Property Group
It’s no secret that London is one of the most expensive places to live not only in the UK, but also the world. However, rentals across the capital are now flat-lining with some even falling off. This brings great hope to those dreaming of affordable living in London.
Thanks to expert analysis from the team at the Open Property Group, it was found that the average cost of rent across the country was £921 a month, which is 0.6% lower than this time last year and is the first fall since November 2010.
And falling rents in London and South East are reportedly causing a decline in the UK’s rental growth.
The average rent in the capital fell by a total of 4.7%, which was caused partly by a 9% boost to the number of properties on the market across the country and 18% more homes on the market in London, compared to 2016.
Potentially good news for London renters?
Indeed, the fact that London is bucking the national trend for rent prices is a huge plus for those living in the capital; and with affordable housing and increased capacity for commuting on the way, the future looks good.
Still, it’s worth remembering that while rent in London may be seeing a small decline, this is pretty small in comparison to the growth we have seen in recent years, as rents are up a third in London since a decade ago.
Now, the cost of renting property in London is so high that a family of four in the likes of Hammersmith and Fulham borough would need a salary totalling more than £100,000 just to pay for basic living space. The rental value of living space in the borough is roughly £32.86 a square metre. And if you’re going to live solo in the borough, you will need an annual income topping £53,000 for living space and basic living costs.
The likes of south London boroughs such as Lewisham and Greenwich are less than half the price of living in Hammersmith and Fulham, whilst living space in Bexley costs less than a third of the price and is the cheapest area to rent in, in London.
All said and done, while rent prices in London may be on the decline, for how long remains to be seen. But for existing and prospective renters in the capital, the decrease in price is small, but very welcome news.