Demand for rental properties in London has grown

Demand for rental homes across the UK has increased, according to new research.

Findings published by Direct Line for Business revealed that landlords in England are witnessing a robust rental market, with earnings from rental payments in excess of £32 billion per year or almost £2.7 billion per month.

Rental Properties in London were particularly popular - London landlords collect the largest proportion of private rental income in England at £14 billion per year more than other.

Figures published by Direct Line revealed that nearly half (44 per cent) of the entire country's rent is paid in London. Outside the capital, Leeds pays the greatest amount of any city, with annual private rent totalling £565 million, followed by Birmingham at £521 million and Manchester at £401 million.

In addition, London and the Home Counties dominate rental incomes, with the highest average rents in Inner London at £19,596 per year or £1,633 per month.

Commenting on the findings, Jazz Gakhal, head of Direct Line for Business, said: "Buy to let is becoming an increasingly attractive option for people as property prices continue to soar. Landlords and potential landlords looking to take advantage of this should also appreciate the risks involved.

"Bad payers and potential damage to property are but just a few of the costs that can lead to landlords paying out 25 per cent of the revenues they receive in rental payments annually."

Outside of London, Bournemouth leads the line in terms of private rentals with 30 per cent of households there privately rented.

Further, the findings showed that Brighton and Hove, and the Isles of Scilly, had high numbers of people renting homes.

It also highlights the high demand for rental properties among consumers. 

Published 18th September, 2014

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