London rents are now rising at a slower rate than those outside the capital, new research has revealed.
According to SpareRoom’s quarterly London Rental Index, rents in the capital have risen by 1.6% in the past year to £747 – compared to an 11% rise between 2014 and 2015. Outside of London annual rents have risen on average by 5% to £440.
The survey revealed that rents in West London have fallen by 2.5%, while in North London they have increased by 6.2%.
The South Eastern postcode area is the only place in London where average rents are still under £700 per month, but it has also seen the second biggest annual rent increase of over 5%.
The priciest place to rent a room is the SW7 postcode (South Kensington & Knightsbridge) at £1,056 per month, while E6 (East Ham) is the cheapest at £508 per month.
If you are thinking of moving to Barnes, it may not be the best place for your pocket – room rents here have soared by 41% to £816 per month.
Matt Hutchinson, director of SpareRoom.co.uk, said: “London’s room rents might have started to plateau but it’s too early to tell if what we’re seeing is an anomaly or the start of a cooling off period. If it’s the latter, it’ll come as a huge relief to squeezed renters.
“It’s not the same story across the whole of London though. Rents in North London have risen by more than 6% and Barnes in particular saw staggering rises, as renters in the South West of the capital look further out than Clapham, Battersea and Fulham in search of more affordable rents.
“South East London remains the cheapest part of the city to rent a room, but, with four of the ten fastest rising areas having SE postcodes, and annual rental increases of more than 5%, it’s a sign things are on the up.”
What Mortgage has teamed up with London & Country to offer you expert advice on the right mortgage deal.
Whether you’re buying a new home, remortgaging to a new deal or buying an investment property, L&C can help – and you’ll pay no fee for their advice. To find out more, click here.
Loading ...