The housing shortage in London continues to drive up the cost to families or individuals seeking to rent a home or that live in the city now. The average cost of a flat or home is now £1650 per month according to the Landbay index, which is the highest since 2011. Of course the cost of properties in more desirable areas of the city is much higher than the £1650 and the outlying boroughs bring the average price down.
London is an outlier though when looking at the entire UK. The average across the UK is only £937 per month, so this means that rent in London and all its boroughs is 60% higher that other parts of the country. It is much more affordable to live in cities such as Manchester or Birmingham.
But there is maybe some recent good news for people looking for a place to live. The rate of rental increases is slowing down. It is a slow but gradual process. In July the annual year over year increases are “flattish”. They have only had one annual increase in the last 18 months, and that was under 1%. So while the cost of housing is out of reach of many people looking to move to the city, the annual rent increase rates have slowed down per the Landbay rental index. Will it continue? Time will tell.
Looking to rent a home in London in 2018?
If you are seeking to move to the city, or live there now and want to relocate to a new property, it can be costly. Not only are the rents the highest in the UK, but many property owners are seeking deposits that include up to one to two full months of rent in advance. This will also include the damage deposits. Most people will struggle to come up with the money they need.
There are some schemes that can help tenants in 2018. One will be application for rent deposit help, and many of the councils in London offer either bond guarantees or loans. This can help pay some of the costs.
There are also not-for-profit credit unions and other loan programmes. Both of them may provide some money for the rent in UK or other cities. The loans often come with lower, more afordable interest rates.
With the cost of housing in London at a 7 year high, it can be difficult to live in the city during 2018. Hopefully for families the Landbay index will start to show some decreases in future costs!