It is a surprising fact that Britain’s tenants paid a record of over £51.6bn in rents, last year; that is an £1.8bn increase compared to last year’s and more than double compared to 2007.
UK rents are expected to rise faster than house prices over the next five years. The Royal Institution of Chartered Surveyors has predicted. The increase should reach 25% for rents and only 20% or even less, for property values.
The bigger struggle is for people living outside London, as it seems like those working and living outside the capital are more likely to spend over 50% of their disposable income to rent, a recent data analysis from Landbay has revealed. According to the figures, an average monthly rent paid for a residential property in the UK outside London hit £761 in March which makes those trying to save difficult to cope with.
Londoners on the other hand, seem quite keen on moving further afield to save money. Rents in the capital have always been excessive, with the average rent reaching £1879 and the average gross salary £34,473 in inner London, while for the UK as a whole this is £22,044. People living in the capital are willing to commute longer in order save on rent and improve their quality of living. The suburbs or even the cities close to London have to offer cheaper two or three bedroom apartments, while in the capital one can only rent a basement studio with the same cost.
If London has reached its peak then it is good news for the rest of the country, as this urbanism will start breaking down, living could be more affordable and luxury towers will give their places to affordable housing.