London rents soar at record to more than 2000P per month

In February, the cost of renting a home in London reached a new high, with rents increasing by almost PS200 per month (S$342). This is according to a report which highlights the housing crisis in the capital.

Office for National Statistics said that the private rents rose by 10.6 per cent in February compared with a year before.

Brent had the largest increase among all local areas in the UK.

Since the ONS started collecting data, this was the second double-digit increase. London rents are above the average PS2,000 per month. Rents in the UK rose by 9 per cent, the highest ever recorded.

Even though the cost-of living crisis has begun to ease, tenants still face a financial squeeze.

The figures are likely to weaken the support that Prime Minister Rishi sunak’s Conservatives have among younger generations in advance of an expected general election later this year.

The problem facing renters in the capital is particularly acute, as limited supply cannot keep up with demand.

Centre for Cities research published earlier this week revealed that London has recovered from the effects of the pandemic, when a so-called ‘race for spaces’ caused people to leave urban areas.

UK brokerage firm stated that this increase was not sustainable and hindered first-time purchasers who were aspiring to climb the housing ladder. Renters are worried that the government is abandoning first-time purchasers while it squeezes landlords.

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The ONS published the first updated rental data that looked at trends in the local area. Brent’s rents rose by 20 percent in February. Islington Greenwich Sutton Westminster and Westminster were all London boroughs with double-digit rent increases.

Brent has the highest growth rate in rental prices, followed by Melton and Kensington & Chelsea.

Also, they said that prices had fallen by 0.6% in the past 12 months. That’s the smallest drop since August. Prices are up 0.5% compared to December.

The figures confirmed the more timely data of lenders Nationwide Building Society (NBS) and Halifax which showed that prices rose as the activity on housing market thawed.