Cor blimey guv’nor. The cost of renting in London increased by 17% in 2010, according to a new study.
’When a man is tired of London, he is tired of life’ said Samuel Johnson. That’s all very well Sam, but making ends meet these days in the capital, what with job uncertainty and fast-rising commuting costs, may make even a staunch romanticist like you think twice.
The cost of renting in the UK as a whole has risen to a two-year high, up from an average £851 a month in September to £859 in December, according to property website Findaproperty.com.
The rental market in the capital saw the typical cost up 5.9% between September and December. Over a year the rise was an incredible 16.6% to £1,925 a month. Rental yields in the capital are now at 5.4%, the highest in the UK.
Nigel Lewis, of Findaproperty.com said: 'Market conditions are a perfect storm for buy-to-let landlords at the moment. Although property prices are coming down very slightly, first-time buyers are still finding it hard to get on the ladder and mortgages remain mostly unaffordable. Rental demand is still extremely strong.'
He added: 'While the increase in stock this quarter hasn't slowed down the increase in rental prices, it will be interesting to see if this leads to weaker prices in 2011.'