Renting: The new London fashion

The rental market in London is heating up more than ever as around 50 per cent of people living in the capital are renting properties rather than buying, according to property consultant Cluttons. The last ten years have seen a massive increase in the number of renters in London and now rental properties are snapped-up quicker than ever.

Throughout the rest of the UK the rental rate is 30 per cent, meaning that in London the number of people renting their homes is almost double. Whereas ten years ago private rentals only accounted for 15 per cent of London's property market, they now make up around a quarter of the market. On top of this another quarter of the market is social housing rentals.

Around 36 per cent of 20 to 40 year olds in London are the main rental market. A large number of these renters look for property that is suitable for a long period of time, allowing them to stay put for several years often in prime location within the city, according to Cluttons. Staying in rented accommodation within the city reduces the cost of transportation into work and also allows people to live closer to a large variety of amenities.

Sue Foxley, head of research at Cluttons, said: "The idea of renting long term is now seemingly universally accepted, partially due to a sea change in attitudes. We are seeing a rise in the number of relatively affluent parents who are happy to bring up children in rented homes delaying a move into owner occupation, something that was uncommon until recent times.

"There is a growing differentiation between those that put a high value on proximity and amenities when choosing where to live and those that react to rising housing costs with soul searching over lifestyles that are prepared to compromise on accommodation in order to keep living costs down."

Demand in rental properties, according to Hometrack's most recent housing survey, has risen by 15 per cent in the past six months, showing that the rental market is very popular within the capital at the moment. It is recommended to snatch-up any property that you like as soon as possible, to ensure a better chance of getting it.

Posted by Chris Price?

Published 10th June, 2013

© 2013 Estates IT Limited