Buy To Let Updated:
It is common knowledge that London is the most expensive place in the UK to rent or buy a home; however, rising costs are impacting massively on lower income families.
Rental prices have boomed in the capital, with rents for large houses in the bottom quarter of the market up by 8.3% to £1,625 a month, highlighting the huge contrast to the rest of the UK.
According to the Valuation Office Agency, a division of the HM Revenue & Customs, the cheapest quarter of rents in London increased by 8.8% in the twelve months leading up to June this year.
With the cost of living so high, families are being forced to look outside London to save on housing costs. The average rent in London stands at around £1,200, vastly higher than the national average of £725.
Gavin Smart, director of policy and practice at the CIH, said: "These new figures confirm our concerns that private rents are rising quickly in London and other high-value areas.
"We are very concerned that combined with the effect of the benefit caps, households will be left to make up huge shortfalls without anywhere they can realistically move to."
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