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London rents have exceeded £1600 for the first time on record as interest rates rise, according to HomeLet’s Rental Index figures from July 2018.
Average rents in London have reached £1,615, up 3.3 per cent year on year. This is the first time that Greater London rents have surpassed £1,600.
The average rent in the UK has also seen growth, reaching £937. This is up by 1.3 per cent on the same time last year. However, when London rents are removed from the equation, the average rent in the UK stands at £777. This is up 1 per cent year on year.
The Index found that Westminster was the most expensive borough to rent within during July. Average rents came to £2,307. This was followed by Camden, which saw rents of £2,213 and Lambeth at £2,104.
In contrast, Croydon was London’s most affordable area at £1,078. Barking, Dagenham and Havering came in second place at £1,209. Haringey and Islington saw the highest annual variance in rent at 12.1 per cent, while Brent saw the lowest annual variance in average rent at -3.3 per cent.
London also saw the greatest household rent to income ratio by region at 36.2 per cent, with a 5 per cent variance year on year. The lowest ratio was found in the North East at 23.6 per cent, with no yearly variance.
Northern Ireland saw the largest year on year increase, with a sizeable 4.5 per cent increase in average rental prices. On a monthly basis, the South East saw the largest increase, with a 2.6 per cent rise between June and July.
Nine of the regions identified by the HomeLet Rental Index saw rents rise during July. However, Scotland, the North East and the East of England did not fare so well. The aforementioned regions all saw rents fall from June to July 2018.