London rents 75 per cent higher than rest of UK
Private rents in London are 75 per cent more expensive than the rest of the UK, new figures revealed.
Tenant referencing service HomeLet’s March rental index survey also showed renting a home in the capital costs 6 per cent more than at the same time last year.
The news comes after it emerged Newham Council in London has attempted to house up to 500 tenants from its waiting list outside the capital because it claims it can no longer afford to house them in private accommodation in the borough. It wrote to 1,179 housing organisations, including Stoke-on-Trent based Brighter Futures.
HomeLet’s survey, out yesterday, showed renting a home in London now costs an average of £1,158 a month while an average home in the rest of the UK now costs £661 to rent, up 3 per cent on this time last year.
Ian Fraser, managing director of HomeLet, warned rising rents, combined with new caps on local housing allowance, could force tenants to move out of London.
‘Tenants who receive LHA may be forced to move to more affordable areas outside the capital,’ he said. ‘As with home ownership, rented accommodation is becoming less affordable in the capital and many household budgets are really being stretched.
‘An increasing number of tenants will not only be short of disposable income, but also maybe unemployed and relying on benefits to pay for their living costs.’
The changes were intended to encourage landlords to lower their rental costs but it seemed many landlords were chosing not to let their properties to tenants who receive benefits, he added.
‘Whilst the private rented sector has traditionally provided additional stock for tenants who receive housing benefits, changes to local housing allowance means many tenants are facing a predicament when trying to move into a property.’ Mr Fraser said.