Average rental prices in London climb 68 per cent since financial crash
Rent prices have climbed across England since the financial crash in 2008, but nowhere more so than in London, where rents are now 68 per cent higher than they were in 2008/09.
In the wake of the 2008/09 economic downturn, average rent across the capital stood at £977 per month, according to data from Ascend Properties.
Now, just more than a decade later, the average rental income in London has climbed 68 per cent to £1,638 each month.
Overall in England the average rental income was £678 in 2009 and since climbed around 20 per cent to £814 per month in 2020.
The South East saw the second-largest increase in monthly rental values, climbing 39 per cent to £1,078, followed by the West Midlands and East Midlands, up 25 and 23 per cent respectively.
The North East saw the smallest rent increase since the financial crash, up 10 per cent to £607.
Ascend Properties managing director Ged McPartlin said: “It’s fair to say that pandemic uncertainty may have caused hesitation for some when looking to invest within the rental market, particularly in areas such as London where demand has dropped due to the enforced trend of working from home.
“However, while Covid uncertainty has created a tricky landscape in some respects, we remain a world away from the financial crisis of 2008 and many remain reliant on the rental sector in order to live.”
London’s £512bn rental market
London is home to more than one million private rented properties, accounting for 22 per cent of all private rental stock in England.
The private rental market in England is now worth £1.3trn, according to buy-to-let specialist Sequre Property Investment.
There are some 4,799,000 privately rented properties across England, the second-highest level on record despite government attempts to dampen the financial return on offer to landlords within the sector.
At the same time, house prices across England have climbed 8.9 per cent, meaning that not only are there more rental properties, but landlords have enjoyed a strong rate of capital appreciation.
With London also home to the highest average house prices, London’s rental market is worth a staggering £512bn.