A recent report on rent prices in London has shown a decrease, with prices only going up 2% compared to the 7% hike experienced between 2014 and 2015, an article highlights on the Evening Standard website. However, even with this noted fall in rent prices, the capital still remains the most expensive city in Britain, with overall house prices still on the rise, and more apartment blocks being erected, and rent for a single room costing an average of £741 a month, the latest figure according to the London Rental Index (LRI) from SpareRoom.co.uk.
A spokesman from the website, Mark Hutchinson, highlighted: ”Nervousness surrounding Brexit has no doubt played a part, but the two per cent growth in rents reflects an issue even closer to home – Londoners simply can’t afford to keep paying more.” As the jobs market is still rocky post Brexit, more people are having to hang on to the money they have whilst trying to afford living closer to their area of work, which is situated in Central London. In areas such as St Paul’s, Holland Park, Chelsea and West Brompton, there was a marked drop of 1% in rent, but rent still tops over £1000 a month. The cheapest areas that surround Central London’s expensive post codes boast rent prices averaging around £550 a month. These areas include Thamesmead and Abbey Wood in the South East, Manor Park in East London, and Edmonton in the North. However, prices in these areas may not stay the same for too long, as more people will move to these areas, driving up rent prices that will have properties becoming just as expensive as Central London.
Hutchinson continues: ”Anyone hoping to nab a bargain in the relatively affordable areas of East and South East London needs to move fast.” This is wise advice, since the housing market fluctuates in a moment’s notice. He also mentions that although ”there’s currently a high supply of rooms, rents are starting to increase far more quickly in these areas, with nine per cent increases in West Norwood (£617) and a 10 per cent increase in East Ham (£566).” So those who want a property in an easily accessible part of London should relocate now, otherwise face a struggle to find an affordable place within commutable distance of work in Central London.
The article concludes by underlining the fact that almost half of London’s total room supply is found in the East, it is one of the least competitive areas to find a room – only a recorded 3 people look for a room in this area compared to an average of 5 in London. So even if rent has slowed down for now, the story may not stay this way for long.