New research has shown that rental prices in London have seen a rise of 7.1 per cent to £1,009 pcm. This is in conjunction with higher annual leasing prices in England and Wales on the whole. This is the sixth consecutive month that the rents have risen with the average now standing at £705 a month. This is an annual rent inflation of 4.2 per cent. The figures have been compiled by LSL Property Services as part of their ‘Buy-to-Let’ index.
Second to London in the rent increase was the North East which saw a rise of 5.5 per cent and the East and West Midlands which saw an increase of 4.8 per cent . This subsequently means that over the past year average rental prices have increased in all the UK regions except for Wales itself which has had a steady level since July 2010.
Commenting on the increase David Brown, commercial director at LSL Property Services, said: “Demand from thousands of frustrated buyers each month is underpinning buoyant competition for rental homes, enabling landlords to increase prices. Such strong demand and high rental incomes has forced lenders to take notice, and more are returning to the sector.”
The increase has hit both home and office rentals at a time when interest is still very high. However, if customers and businesses alike choose to search for cheaper options you could see a variety of empty office and residential developments in the London area. Many customers have been looking towards other large cities such as Manchester and Birmingham. What’s more, those interested in residential properties have begun to look at areas close to London that could be easy to commute to and from.