Tenants choosing to rent property in the capital will pay almost 8% more than they would have paid last year, it has been revealed.
In a survey of 15,000 tenants by HomeLet, it has been revealed that the average rental value in London has reached £1660pcm, 108% higher than the rest of the UK.
HomeLet's October’s Rental Index also revealed that the gap between rental prices in the capital and the rest of the UK is widening, as London tenants are paying on average £800 a month more than those living outside London.
Scotland experienced the fastest rent rise for the second month in a row, where tenants choosing to rent new property will pay 8% more than what they would have paid in 2014.
Rental prices have gone up in the UK as a whole by a more stable 3%; figures which will be welcomed by those considering starting a new tenancy.
Further pressure will be placed on the rental sector, with 64% of those surveyed said that they planned to continue renting for a year or longer, whilst 90% of those surveyed said they were happy with their landlord.
Martin Totty, Barbon Insurance Group Chief Executive Officer, said: “The positive news is that almost nine out of 10 tenants told us that they were happy with the standard of their current rented property; and the majority of tenants told us they were happy with the service provided by their landlord or letting agent.”
“Whilst we are seeing upward pressure on the rental market it’s important that the sector continues to drive professional standards forwards for mutual benefit of tenants, landlords and letting agents,” he added.