London rent prices rise despite traditional Autumn slow down
26 November 2015, Blog
London rents rose by 0.8 per cent in October, hitting an average of £2,063 p/m. The upward trend in London rent prices continued despite the seasonal slowdown usually associated with autumn months. According to MIAC’s Landbay Rental Index, London’s housing shortage, falling unemployment rate and pay rises are the cause. MIAC suggested that the shift shows that the London private rental sector is seeing a period of consistently high demand and insufficient supply of properties.
This is the second year the trend has been followed, with rents in 2014 rising every month except July, when they fell by just 0.1 per cent. This year the only decrease in average rents came between June and August, before increasing again by 0.7 per cent in September. The typical autumn seasonal slowdown in the rental market is caused by lower student tenant demand, first jobbers moving for work, and contracts ending after the previous year’s summer rush.
John Goodall, co-founder and CEO of Landbay said: “The simple fact is that more people are renting for longer and there aren’t enough properties to meet demand.” Goodall added: “With London’s economy going from strength-to-strength, people are willing to compete for rental properties, pushing up prices”.
Research from the Centre for London think-tank found that senior nurses and teachers will be priced out of the Greater London housing market in two years time. Kat Hanna, research manager at the Centre for London said: “A lot of national policies are not addressing London problems”. Hanna added that those unable to afford housing also included “doctors, solicitors and journalists”.