Third of London renters hit by bill hike of at least 10 per cent (2024)

FAQs

What percentage of rent increase in London? ›

Private rental prices in London increased by 6.8% in the 12 months to October 2023, up from an increase of 6.2% in the 12 months to September 2023. This is the highest annual percentage change since the London data series began in January 2006.

3.3 According to the 2021-22 English Housing Survey, more than a quarter (29 per cent) of homes in London were privately rented, significantly higher than the UK average of 17 per cent. Within these results, private rentals are now the largest tenure above mortgaged homes at 27 per cent.

However, there are already signs that the rate of increase is slowing down in 2024. However, both Rightmove and Zoopla have predicted a “major slowdown” in 2024 due to affordability, and expect rent on new listings to increase by only 2-3% in London in 2024, and by 5-9% in the rest of the country.

Bidding wars, eviction threats and shock price hikes are now the bleak reality of renting a home, tenants warn. At the epicentre of the crisis is the capital where there are 25 people for every available dwelling, according to the campaign group Renters Reform Coalition.

Even though New York is more expensive, salaries tend to be higher than in London. Consumer Prices: London's consumer prices are 16.52% lower than New York City (without rent). Rent Prices: Rent prices in London are 30.45% lower than in New York City.

There isn't a specific limit on how much a private landlord can increase the rent. Yet, the increase must be fair and reasonable. To determine a fair rent increase, you should consider changes in the local rental market, inflation rates, and the condition of the property.

Key takeaways. London is by far the most expensive place to rent a home in the UK with an average rent of £2,119 for new lets. Average rents in London are almost double the UK average of £1,220. However, rental inflation in London has slowed in the last 12 months, now at +6.4% versus +16.1% a year ago.

An imbalance between supply and demand as the main driver of record-high prices. Households are also facing rising energy bills and food costs as part of the cost of living crisis and there is no respite when it comes to housing costs.

The average annual cost of rent in London is currently £26,316, which is by far the most expensive rate in the UK and almost £3,000 per year on monthly expenses. The average rental prices in London have increased by 14.3 percent compared to last year's rental market data alone.

London landlords are expected to raise their prices by two per cent in 2024, a substantial decrease when compared to the nine per cent hike which was recorded by property portal Zoopla at the start of autumn.

What is the average rent increase in London? ›

London rental inflation falls below the long-term average

The average monthly rent in London is now £2,121 - £90 higher than a year ago. This increase is higher than the UK average of £80 per month but is much lower than the £290 per month nationwide rise in the second half of 2022.

By 2030 the forecast is that some 25% of London's housing stock will be priced at a £1Million or more, with about 7% of the stock in the South East at that same level.

Wiltshire. Three towns in the top ten postcodes affected by the influx of Londoners — Trowbridge, Chippenham and Swindon — are in Wiltshire, and Marlborough is 12th. In Trowbridge, Wiltshire's county town, one in two new rentals this year were agreed by people who had moved out of London, Hamptons says.

Simple. A spike in your tax bill thanks to 'Section 24' plus high interest rates mean owning rental properties is no longer profitable for many buy-to-let landlords. More than one in ten sold up last year (1) – but if you're not ready to sell, there are other ways to make your tax bill manageable and stay profitable.

Rocketing rental prices in London should be music to landlords' ears—but instead, they are on a selling spree. British landlords are selling more houses than they are buying. The United Kingdom is grappling with an escalating tenant crisis, witnessing the highest number of renters since the turn of the millennium.

London is by far the most expensive place to rent a home in the UK with an average rent of £2,119 for new lets. Average rents in London are almost double the UK average of £1,220. However, rental inflation in London has slowed in the last 12 months, now at +6.4% versus +16.1% a year ago.

The Bricks&Logic Index shows that average rents across London increased by 38% in the past ten years (Figure 1). If we compare this to inflation over the same period (26%), we have about a 12% increase in real terms. Over the same period, the equivalent sales index is up 65% (Figure 2) or nearly 40% in real terms.

At the end of last week, the Department for Levelling Up, Housing and Communities (DLUHC) updated its website to reveal that social housing providers in England will be able to raise rents by up to 7.7% next year. This will apply to rents for new and existing tenants from April 2024 this year.