Demand for London homes is rising
Are rents too high in London? A cursory glance at dramatic headlines claiming that Londoners are being forced into substandard accommodation and that first-time buyers are finding it impossible to get on the property ladder, and one may assume yes. Many people view private renting as a temporary thing; but it appears that perhaps rather like Europe, the future is renting.
Despite the doom and gloom stories, the truth is that renting is often a positive experience and many people who decide to rent prefer this, as they have the flexibility to move around as they wish without the burden of a mortgage. However, it is true that private tenants in the UK pay the highest price for housing in the entire European Union. The average monthly rent of €902 per month (or £730) means that private tenants in the UK pay almost double the amount of the European average of €481 per month.
Rents in the UK are 50% higher than in Germany, where households spend an average of 25% of their income on renting.
Germany has the highest proportion of private tenants in the EU. While the average household in private accommodation in the UK spends nearly 40% of its income on rent, compared with a European average of 28%.
All of this seems to support those calling for rent caps that the Labour Party is keen on introducing.
But perhaps the media should look at this issue from another angle. Rents are so high in London because so many people want to live in the capital due to business opportunities, jobs, entertainment and to access some of the best universities in the world. This is no bad thing and helps boosts London’s profile, even though the knock-on effect is expensive accommodation.
As well as this, it seems that tenants’ displeasure with their landlords may be somewhat presumed rather than actual fact. Research commissioned by a specialist buy-to-let lender showed that 81% of tenants in the private rented sector are satisfied with their landlord.
The survey asked 500 tenants living in privately rented homes for their views on their current tenancy and their future aspirations. The majority said they believe that the property they rent is their home, with 70% saying that the rent they paid was either good or very good value for money.
Rather than landlords being the problem, the issue is housing stock, the culture of homeownership and the fact that there aren’t enough properties being built.
As a nation, we need to be able to accommodate those who are looking to live and work in London.
Here at Assetgrove, we provide peace of mind for landlords looking for a guaranteed rental income, reliable tenants and a hassle-free day-to-day life, without having to worry about their properties.
Tenants also have a good deal with us. We communicate regularly with them, provide secure accommodation (up to five years) and make sure that we fix any repairs or outstanding problems with the property they’re renting.
Make sure you contact us for more information about renting property in London.