London rents more than twice national average

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The average London rent is now 102 per cent more than the national average, according to analysis released today.

According to BM Solutions, the average rent in the capital is now £1,417 per month whereas the national average is £701.

The national average rent increased by £27, from £674 in 2012 to £701 in 2013. The rise in the average London rent was £135 over the same period.

There was a clear north-south split, with renters in the south east having the second-highest average rent at £913 per month and renters in the north paying around £501 per month.

Wales recorded the largest percentage rise of 10.6 per cent, bringing its average monthly rent to £51, closely followed by London at 10.5 per cent, and Yorkshire and the Humber with a rise of 7 per cent.

The research found that buy-to-let investors’ rental income grew on average by 4 per cent.

Phil Rickards, head of BM Solutions, said: ‘Demand for rental accommodation remains strong, and in many regions this is outstripping supply which can lead to an upward pressure on rent prices.

‘However our figures show that even with increasing rents, the average yield that investors are getting has remained static, which will be driven by the fact that the average price of a typical buy-to-let property has grown marginally faster that average rents.’  

Buy-to-let purchases grew by 28 per cent to 46,430 in 2013, up from 36,400 in 2012.