The cost of renting in London has fallen for the first time in eight years – now it’s just expensive rather than ridiculously so. According to research, the average monthly rent in the capital is now £1,519 compared to £1,537 last year.
The 1.2% drop doesn’t sound like much but with Londoners forking out nearly three quarters of their monthly salary on rent, any reduction is a bonus. Some posh London addresses in Kensington and Chelsea, saw tenants part with an eye watering 96% of their wages just to keep a roof over their heads.
The decline is due to a couple of factors – such as the general slowing down of the property market and the fact that London is saturated with rentals as properties that were under construction are only now becoming available (talk about bad timing).
But whilst the market is slow overall, it’s the traditionally more expensive areas of London and the South-East, that have seen this translate into lower rents. In other areas, the cost of renting seems to have plateaued and the average cost in the UK is now £904 which is just 0.4% higher than the same period last year.
The 1.2% fall might be a drop in the ocean for city dwellers but it gives tenants hope that they can spend at least some of their hard-earned cash on having a little bit of fun. And let’s not forget, a sluggish housing market means there’s an opportunity to get onto the property ladder or to climb up a couple of rungs. So, whether you’re looking to save for a mortgage, increase your chances of getting one approved, or upping sticks and taking your mortgage with you – let us help you – check out our mortgages hub and buy a home to call your own. You’ll also need to think about a good savings account to help you with your deposit too.