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London’s rental growth spearheaded by boroughs in the west, while PCL sees a slow-down

by Richard on April 28, 2016 No comments

The average rent for a two-bedroom home in London is predicted to hit £2,000 a month this year, according to research from a leading London estate agency, which also revealed how rents vary by borough across the capital.

Currently, two-bed London homes rent on average for £1,867 a month, representing a two per cent increase from the beginning of the year. Given that tenancies which commence in September are typically 11 per cent higher than tenancies that commence in the December before, a report by estate agency Portico forecasts that two-bed rents will reach £2,008 a month by September 2016.

And with two people sharing the cost of a two-bedroom home – i.e. £1,004 a month – this shared rent figure will consume 46 per cent of the average London monthly net salary.

The same reports shows that Ealing is the borough that has seen the largest increase during the first quarter of 2016, with rents for a two-bed home growing 6.9 per cent to £1,825 a month. This is followed by Richmond-upon-Thames with a 6 per cent increase (£1,934 a month) and Lambeth with a 5.8 per cent increase (£2,051 a month).

However, average rents have reduced for two-bed homes across seven London boroughs, including two boroughs in Prime Central London where rents in Westminster and Kensington and Chelsea have reduced by 5.7 per cent and 1.1 per cent, respectively.

Bromley has experienced the greatest decline in monthly rents for all properties with a reduction of 6.3 per cent over the first quarter, followed by Hillingdon at 4.4 per cent and Kingston-upon-Thames at 4.1 per cent.

RichardLondon’s rental growth spearheaded by boroughs in the west, while PCL sees a slow-down