London home rents up at unprecedented to over £2,000 monthly

London rents jumped to record levels in February. They now cost almost S$342 (£200) per month, according a report on the city’s housing crisis.

Office for National Statistics, (ONS), announced on Wednesday, March 20, that private rents were up 10.6 % from a month ago, with Brent experiencing the most dramatic increase.

It was the ONS’ second month of double digit increases. London tenants pay an average of more than PS2,000 each month. This was even more significant than the 9-percent increase in rents for the entire UK, also the fastest recorded.

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The figures reveal that tenants’ finances are still being squeezed even as the cost-of -living crisis starts to fade. It’s likely that the Conservative Party of Prime Minister Rishi Sonak will lose support from younger generations before a general vote expected later in the year.

The crisis affecting renters is especially acute in London where limited availability meets a surge in demand. Centre for Cities conducted research earlier this year that revealed London’s population rebounded after the pandemic.

UK brokerage firm has stated that such an increase is not sustainable and hinders the first-time buyer’s aspirations to climb up the housing ladder. Since the government has largely abandoned first time buyers, while also squeezing their landlords, renters fear worse is to come.

This was the ONS’s first release of updated data on rental rates that looked into local trends. Brent rents rose 20 percent in Feburary. Islington Greenwich Sutton Westminster are all London boroughs which have experienced double-digit rises.

Brent was the area with the highest annual rent growth, Melton saw it at the lowest. Kensington & Chelsea had the highest and Dumfries & Galloway had the lowest.

In addition, they reported that house prices dropped by 0.6% to PS282,000 during the 12-month period ending in January. This is the smallest decline since August. Prices were up 0.5% from December.

The figures confirmed earlier data from Halifax and Nationwide Building Society that showed prices increasing as the housing markets thawed.


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