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Seasonal trend sees rents in London drop

publication date: Jan 18, 2012
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The average cost of renting a home in London dropped in October – dipping for the first time in 2011, according tothe latest HomeLet Rental Index.

Rental amounts in the city fell for two consecutive months by nearly four per cent, to an average of £1,158 per month.

However the cost of living in a rented home in London is still nearly 9 per cent higher than the same time last year, and a massive 23 per cent more than in October 2009.

The average cost of renting a UK home also reduced by 2.5 per cent to £763, four per cent up on last year. So though the amount has lowered, tenants are still paying more.

Only two UK regions saw an increase in average rents. Wales and East Anglia saw average rents go up by 3.4 per cent and 1 per cent, while in Scotland rents dropped by
7.5 per cent to £547.

John Boyle, MD of HomeLet, said, “We do normally see a seasonal dip in actual rental prices at this time of year due to the amount of students being referenced for higher value shared properties.

“At a first glance the drop in rents would appear to be good news for tenants, however, when we see how expensive it is to live in a rented property compared to last year, we see how demand for homes has increased over the year.

“If rental amounts increase as much in early 2012, renting may be unaffordable for an increasing number of people, particularly in London.”