The rents paid by tenants in London is increasing significantly when compared to their counterparts outside the capital. The average rent in London is £1,874 as against £759 for the rest of the UK, indicating the demand for buy-to-let homes in the capital.
According to the latest Rental Index Report by Landbay, tenants occupying properties in London are now spending an average of £1,449 on rent for 1-bedroom properties, £1,920 for 2-bedroom properties and £2,677 for 3-bedroom properties. Conversely, tenants occupying properties in the rest of the UK are paying an average of £599 on rent for 1-bedroom properties, £715 for 2-bedroom properties and £826 for 3-bedroom properties.
Increasingly, investors are acquiring to buy-to-let homes in London, as the demand from tenants has picked pace.
Since October 2016, average rents in the UK have risen by 0.68 per cent to £1,196. In England, rents were up by 0.60 per cent to £1,227/ month; In Northern Ireland, rental prices rose by 0.81 per cent to £563/ month. Meanwhile, in Scotland, rents increased slightly to £733/ month, following an average annual growth of 1.81 per cent; in Wales, the average rent rose by 1.49 per cent to £642.
The East Midlands has taken the rental growth leadership by storm this month, to become the region with the greatest rental change in the whole of the UK, since October 2016.
The Landbay Rental Index includes unique granular level detail, looking at local trends to the county and London Borough level, including further segmentations by number of bedrooms.