Rental costs price families out of London - Buy To Let - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Rental costs price families out of London

Rental costs price families out of London

Category: Buy To Let

Updated: 24/08/2012
First Published: 24/08/2012

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

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."

Thinking of buying a property to rent?

Find the best buy to let mortgages at Compare fixed rates, trackers & new landlord BTL deals with our independent Best Buys.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Buy-to-let mortgage availability drops

It’s been a turbulent year for buy-to-let (BTL), with Government interventions impacting the sector and activity dampening as a result, and our latest figures reveal the largest drop in the number of available mortgage products since 2009.

Number of parent landlords on the rise

The cost of renting is on the rise, but would it cheaper if you were renting from your own parents? Many children of property moguls will hope so, and with the number of parent landlords on the rise, it’s something more and more could benefit from.

Landlords: BTL mortgage rates are still falling!

The cut to base rate has had a welcome impact on mortgage rates, and it isn’t only residential borrowers who are benefiting: buy-to-let (BTL) investors are continuing to enjoy a fall in rates, particularly those looking for a longer-term deal.