London rents hit record high as demand rises

 
Tim Wallace
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RENTS in the capital jumped to a record £1,118 per month on average in July, industry data showed today, following months of soaring house prices in London.

London rents jumped 5.7 per cent in the last 12 months, LSL Property Services reported.

England and Wales overall saw a 1.8 per cent increase on the year.

The trend is set to continue – across the country demand is rising with 12.3 per cent more new lettings this July than in the same month of 2012.

At the same time households continue to predict rising house prices for the year ahead.

Knight Frank’s sentiment index came in at 73.0 in London and 74.7 in the south east, down fractionally on their level a month ago but still firmly above the 50 mark which indicates no change is expected over the coming 12 months.

Meanwhile housebuilding at last showed some signs of increasing.

The second quarter saw 29,510 house building starts, up six per cent on the previous three-month period and one-third higher than in the same period of 2012 according to official figures.

The increase brings housebuilding to its highest level in four years.