Rents rise by 31% in 10 years

rented houseThe cost of renting a home from a private landlord has gone up by 31% in the past 10 years in London.  That is twice the rate of increase seen in the rest of England.

The figures are revealed in a newly creating Index of Private Housing Rental Prices, produced by the National Office for Statistics.  It shows that rents went up by 3% in the first quarter of 2015 compared to the same period last year. It was 1% for the rest of England.  London rents have gone up by at least 3% every year since 2011.  The annual rise reached a peak of 5% in 2012.

Private rental inflation

The only fall in the last 10 years, both London and nationally, was in 2010. The rate of rent rises was broadly in line for London and the rest of England 10 years ago, but a gap has opened since 2011.

Renting is more expensive in the capital for all sizes of homes.  The most recent data from the Valuation Office Agency, which advises the government on property values, shows the median rate for a 2-bedroom property is £580 across England, but £1,382 in London.  A 1-bedroom flat in London costs more per month than a 4-bedroom property elsewhere in England.

London Rest of England
1 Bedroom £1,148 £520
2 Bedroom £1,382 £580
3 Bedroom £1,668 £675
4 Bedroom £2,500 £1,100

Private rental median prices September 2014: Valuation Office Agency

Rising rental costs are having an impact on the number of tenants losing their homes in London, which is at an all time high, as reported by Urbs.