August saw the cost of renting a property within London reach an all time high, despite a slowdown in average salary levels within the capital.
With rental payments deemed unaffordable and unsuitable for many individuals within London, purchasing a property with more affordable monthly payments may be a more long term cost effective process. With more competitive mortgage deals available to the mortgage broker for a considerable period of time, individuals within London can find cost effective deals.
Recent research by tenant referencing specialist HomeLet has shown that tenants within London are finding rental budgeting tougher than ever before. The average rental price within the Greater London area increased to £1202 during August, a rise from £1,154 in July, despite the economic instability which continues to hurt the UK, Eurozone and global economy. London property still appears attractive for many individuals.
In even more staggering statistics released there has been a 12.2% increase in rental prices since August 2010, suggesting demand for London rental properties continues to be sky high as individuals are unable to gain a foothold within the property ladder. With demand increasing by such a high amount, the number of rental properties within the market has only slightly increased within the period. The London rental property market could be a real opportunity for potential extra income for individuals with the mortgage broker able to find a number of cost effective buy to let mortgage deals within the mortgage market.
Managing director of HomeLet, John Boyle today had his say on London rental prices. He claimed: Tenants in the Greater London area are stretching their budgets more than ever, not only due to an increase in rental costs, but also rising energy costs following the announcement by utility companies that gas and electricity prices are set to soar even higher. This isn’t a good sign for some tenants who may struggle as winter approaches and the cost of running a home increases even more.
“Despite increasing rents due to high demand, the private rented sector is still offering a stable alternative to home ownership. Whilst many tenants are still renting because they can’t afford to buy, an increasing number of tenants are choosing to rent for the long term because of the flexibility that that it offers.
Suitable and affordable mortgage deals remain on the mortgage market, despite lending levels having decreased within recent years. The number of products available continues to increase and mortgage lenders throughout the UK are offering competitive mortgage products.