This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Renters in London are paying some of the highest prices in the world and the rental market doesn’t seem to be getting any better.
Can looking at rent rises in the past indicate what’s in store for tenants in the future?
Studios
The median rent for a studio has increased by 15% in the last five years. In Hackney, the rise has been close to 40%, to £1,000 per month. However, this is still £300 cheaper than studio rents in the City of Westminster and the City of London, the most unaffordable boroughs.
How Have London Rents Risen?
In 2010/11, the median price was £736.67, which rose to £850 in 2014/15. In the cheapest 25%, prices have grown from £615 to £719 and from £975 to £1,083 in the top 25%.
One-bedrooms
Prices for a one-bedroom flat have increased by 22%, but by 30% in the outer boroughs of Ealing and Greenwich. Alongside rents in Westminster, Kensington and Chelsea and the City of London, median prices in Camden have exceeded £1,500 in the last five years.
The median price was £950 five years ago, but is now £1,155. In the bottom 25%, prices have gone from £760 to £922, and in the most expensive 25%, from £1,278.33 to £1,430.
Two-bedrooms
A median-priced two-bed home in 2010/11 would cost £1,200 per month, but now this will only get you a property in the bottom 25%. Greenwich and Waltham Forest experienced the greatest increases of 39% and 32% respectively.
The median price has risen from £1,191.67 to £1,400 in the last five years and prices in the bottom 25% have gone from £950 to £1,200. In the top 25%, rents rose from £1,550 to £1,733 a month.
Three-bedrooms
The median rent for a three-bed home in 2010/11 won’t even pay for a three-bed flat in the bottom 25% today. Richmond upon Thames saw an increase of 39% over this period. Rents in Hackney and Lambeth have grown to over £2,000.
The median rent has risen from £1,350 to £1,695 in the past five years for this property type. The lowest 25% of rents are up from £1,150 to £1,400 and the most expensive rents grew from £1,841.67 to £2,250 per month.
Four or more bedrooms
Rents on a four-bed home have increased by an average of 25% over the last five years. In Hammersmith and Fulham, they’ve risen by over 50%, from £2,815 to £4,312. However, this is still significantly less than the median price of a four-bed property in Kensington and Chelsea, which is £9,425 a month.
The median price on this kind of home has grown from £2,000 to £2,500 since 2010. In the bottom 25%, rents have increased from £1,500 to £1,900 and from £2,730 to £3,445 in the top 25%.
