London, the capital city of the United Kingdom, is one of the most expensive cities in the world. With a population of over 8 million people, it’s no surprise that finding an affordable place to live is a challenge.
In recent years, there has been much discussion about whether or not rents are increasing in London. Let’s take a closer look at the data to see what’s really going on.
The State of Renting in London
London is divided into 33 boroughs, each with its own unique character and property market. According to a recent report from HomeLet, the average rent for a property in Greater London was £1,596 per month in July 2021. This represents an increase of 3.4% compared to July 2020.
Hotspots for Rent Increases
While rents have increased across Greater London as a whole, some areas have seen more significant rises than others. For example, according to data from Rightmove, the average asking rent for a property in Hackney has increased by 9% since June 2021. Other areas that have seen notable increases include Tower Hamlets (7%), Hammersmith and Fulham (6%), and Lambeth (5%).
Factors Contributing to Rent Increases
There are several factors that may be contributing to rising rents in London. One key factor is supply and demand – with so many people looking for accommodation in the city, landlords are able to charge higher rents for their properties. Another factor is inflation – as prices rise across the board, landlords may feel justified in increasing their rents to keep up with rising costs.
What Can Tenants Do?
If you’re currently renting in London and are concerned about rising rents, there are several things you can do to try and mitigate the impact:
- Research: Before signing a tenancy agreement, do your research to make sure that you’re getting a fair deal. Use online resources to compare prices in your area and make sure that you’re not being overcharged.
- Negotiate: If you feel that the rent being asked is too high, don’t be afraid to negotiate with your landlord. You may be able to come to an arrangement that suits both parties.
- Consider Sharing: Sharing a property with others can help to reduce your monthly outgoings. Just make sure that you’re comfortable living with other people before committing.
- Look Further Afield: If you’re struggling to find affordable accommodation in central London, consider looking further afield. Areas outside of the city may offer more affordable options while still allowing you to commute into London for work.
The Bottom Line
While rents are undoubtedly increasing in some areas of London, it’s important to remember that this isn’t true across the board. By doing your research and exploring different options, you may still be able to find affordable accommodation in the city.