RENTAL costs have soared past £1,000 per month in London, a survey of letting agents revealed this morning.
London’s rents were up an average of 6.9 per cent per property in June compared to the same time the previous year, the Buy-to-Let Index from LSL Property Services said.
While rent inflation is particularly intense in the capital, a shortage of supply into the market is driving up the cost of renting throughout the UK.
Across the country as a whole rents soared 0.7 per cent in June. The average rent now costs £701 per month in the UK – another record high.
“Depressed mortgage lending has created a backlog of frustrated buyers, ramping up pressure on the limited supply of rented accommodation,” commented Jonathan Moore, director of the website easyroommate.co.uk.
However, mortgage lending in the capital could be turning a corner, according to a separate survey released today by a group of chartered surveyors.
Mortgage approvals in London jumped 12.3 per cent in June, making it the best-performing region in the UK, the group E.surv said.
The upturn in lending activity in London included an increase in the number of first time buyers. However, the number of Londoners getting on the property ladder still remains low.