While the average London tenant will pay £1,574 per month, the average cost of residing at the very top of the capital’s rental market comes in at a huge £23,839, – a 1415 per cent rental price premium.
London-focused rental platform Rentd looked at the average cost of renting in each London borough before comparing this to the most expensive rental listing currently available on the market to reveal the gap between what the average tenant pays and the very top end of the market.
Today the agency shares its findings with City A.M.
The research shows there are no less than eight boroughs where the most expensive rental property currently available on the market carries a rental price premium of over 1,000 per cent when compared to the cost paid by the average tenant.
The city’s largest difference is found in Westminster where the average monthly rent is £2,528.
Top of the market
At the very top of the current market, however, is a 7-bedroom, 7-bathroom, detached house with a swimming pool, spa, sauna, and gym. Rent costs £173,333 pcm; £170,805, or 6757 per cent above the borough average.
In Barnet, the average rent is £1,448 but at the top of today’s market is an 8-bedroom, 9-bathroom home with a car lift, an ice fountain, and a cinema room, which comes at the price of £78,000 pcm; £76,552 (5287 per cent) above what the average Barnet tenant will pay.
Meanwhile over in Camden, the average cost of renting currently sits at £1,936, but tenants could also opt for a 9-bed mansion complete with heated outdoor swimming pool, gym, and bar, for the princely sum of £86,667 pcm; £84,731 (4377 per cent) above average.
The Royal borough of Kensington & Chelsea is home to the highest average rental cost at £2,712 per month. It’s also home to the most expensive rental property on the market, along with Camden, and this 6-bed house with a glazed light well, and a master suite that covers the entirety of the top floor is available for £86,667 pcm; £83,955 (3096 per cent) above the wider borough average.
In the borough of Richmond-upon-Thames, the average rent is £1,768 but at the top of the market is a truly remarkable 4-bed home situated right in the middle of Richmond’s Old Deer Park, surrounded by manicured greenspace with a lake in the ‘back garden’. It commands a price of £37,500 pcm which is £35,732 (2021 per cent) above the borough average.
South of the river
South of the river, in Southwark, the average rent is £1,732. At the top of the market is this 3-bed duplex apartment offering stunning views of the city and the Thames. It costs £30,333 pcm; £28,601 (1651%) above average.
This 5-bed penthouse apartment, covering 4,000 sq ft with views overlooking Chelsea Harbour, is the most expensive rental property currently listed in Hammersmith and Fulham where the average tenant pays a relatively affordable £1,964. £28,153 less than the £30,117 per month required to rent this penthouse.
While Wandsworth’s average rent is £1,902, this 3-bed flat, situated slap-bang in the middle of the iconic Battersea Power Station, is currently listed for £28,167 pcm – £26,265 (1381%) above the average cost of renting in the borough.
“It’s no secret that the high cost of homeownership is forcing many of us to rent for far longer in life and the importance of the rental market has never been greater when it comes to picking up the slack left by ever increasing house prices,” said Ahmed Gamal, Founder and CEO of Rentd.
Gamal told City A.M., however, that for some, renting is a lifestyle choice rather than a necessity and for the rental market elite, it provides the ability to change their home, city or country every six to 12 months.
“Of course, they still require a home that boasts the appropriate level of grandeur and London certainly delivers in this respect.”
“There are some truly incredible homes available to rent the length and breadth of the capital and a single month’s rent will set you back what most of us earn in a year, or even five,” Gamal concluded.