London rental prices up as demand soars

07 2008
The cost of renting a house in the capital has risen by as much as 20 per cent since last August, it has been revealed.

Once again showing the importance of shopping around for the best deal on a new rental property, Foxtons has reported that booming demand within the sector has led to average monthly rents steadily increasing in nearly all parts of the city.

This has largely been caused by a fall in supply of homes for sale, with the firm revealing that numbers have declined by 11 per cent since January, while many people are also choosing to rent rather than attempt to buy in such an uncertain economic climate.

Commenting on the recent trends in the London rental property sector, Ed Phillips, lettings director at Foxtons, explained: "Without doubt we've seen rental prices go up in the last nine months or so since last summer. Prices have gone up between 10-20 per cent on new tenancies and even renewals have gone up by approximately seven per cent.

"This is essentially down to the factor of more people needing properties than there are properties available."

As well as better career opportunities, many people are attracted to London due to its vibrant social scene and rich cultural heritage.
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