London rental prices have decreased since 2012

As the price of property in London increases, making it more difficult for people to find homes to buy within their price range, rental prices have decreased. The cost of residential rents throughout London has fallen since the middle of 2012. The latest rental index has shown a ten per cent decline, year-on-year, of rent prices in the capital, whilst rents in the south-east have increased.

The Move With Us Rental Index has been compiled alongside an economist at the London School of Economics and shows a marked decrease in rental prices in the second half of 2012, continuing into 2013. The index shows that in the third quarter of last year, London rental prices fell by 4.9 per cent and then by a further 2.22 per cent in the fourth quarter. Whilst the decrease so far this year is not as large, it is still present. In the first quarter of 2013 rents decreased by 1.69 per cent and then 0.85 per cent in the second quarter.

In contrast to these figures the index has found that rental prices in the south-east increased by around £30 within the second quarter of the year, making the average rent £1,147 per month. Although the region saw a slight decrease in rents throughout April, they rose by 2.71 per cent by the end of the quarter.

Even Greater London experienced a decrease in residential renting prices. Whilst the area still outperforms the whole of the UK in terms of rental asking prices, as a whole the average monthly rent fell by 0.85 per cent in the second quarter of this year. This is a ten per cent decrease when compared to the same period in 2012.

The continued decline in London rental prices shows that renting is a more viable option than purchasing residential property, as asking prices throughout the capital continue to soar and properties sell at a speed faster than the national average. It is more likely that renting property in and around the city will allow people to get more for their money when compared to the size of affordable properties for sale.

 

Published 16th July, 2013

© 2013 Estates IT Limited