London rents top inflation to rise at fastest rate in Britain

RENTAL costs in the capital rose at twice the rate of the consumer price index (CPI) measure of inflation in the year between June 2012 and June 2013, ticking up by 4.9 per cent.

According to HomeLet’s rental index, rents in London rose by more than in the rest of the country, where the average increase was three per cent.

A home in greater London now costs an average of £1,270 to rent, 86.5 per cent more than the £681 average for the rest of the UK’s regions. South east London saw rents shot upward by 13.9 per cent in the same period.

The cost of renting a home is now 36.7 per cent more than it was in June 2009, a period in which there has been little growth in incomes, and other prices have also risen sharply.

Rents in some parts of the country put less pressure on wages: the north east of England, West Midlands, Wales and Northern Ireland actually fell in the 12 months running to June.

Andy Richards, business development director at HomeLet, commented: “Costs are rising at a rate much faster than both inflation and tenant income. With recent reports of increased tenant rent arrears, it appears that maybe those renting a property just cannot afford spiralling living costs”.