Average rent for a two bed home in London set to surpass £2,000 a month
Average monthly rents for two bedroom homes are expected to reach £2,000 by the late summer of this year, according to new research.
It currently stands at £1,867 per calendar month, up 2% already since the beginning of the year, according to the London Rental Market Report from estate agents Portico.
Given that tenancies which begin in September are typically 11% higher than tenancies that begin in December, Portico is predicting that two bedroom rents will reach £2,008 per calendar month by September this year.
And with two people sharing the cost of a two bedroom home, that is £1,004 per calendar month each, this shared rent figure will use 46% of the average London monthly net salary.
The report shows that Ealing has seen the largest increase in rent at 6.9%, taking the rent for a two bedroom home to £1,825 per calendar month, followed by Richmond-upon-Thames at £1,934 for two bedrooms per calendar month, a rise of 6%, and Lambeth at £2,051, a rise of 5.8%.
However, average rents have fallen for two bedroom homes across seven London boroughs, including Westminster and Kensington and Chelsea where they are down by 5.7% and 1.1% respectively.
Bromley has recorded the greatest decline in monthly rents for all properties with a reduction of 6.3% over the first quarter of this year, followed by Hillingdon with a fall of 4.4% and Kingston-upon-Thames down 4.1%.
‘The majority of London boroughs are seeing rent increases anywhere from 1% to almost 7% so for landlords who may be feeling under particular pressure given recent government announcements, this may provide some welcome news,’ said Robert Nichols, Portico managing director.
‘But our latest report also shows some significant rent drops. Bromley is down over 6% with Kingston and Hillingdon also experiencing 4% falls. All in all, these declines won't prevent the average two bed rent tipping over the £2,000 mark later this year,’ he added.
A breakdown of the figures show that the largest increase in rent for all home types was in Hammersmith and Fulham along with Lambeth with a rise of 4.7%, followed by Ealing at 4.6%, Westminster at 4.3% and Kensington and Chelsea at 4.2%.
For two bedroom homes the largest rent increase was in Ealing at 6.9%, followed by Richmond-upon-Thames at 6%, Lambeth at 5.8%, Lewisham at 5.2% and Wandsworth at 5.1%.
The largest decrease in rents for all home types was in Bromley with a fall of 6.3%, while rents were down by 4.4% in Hillingdon, by 4.1% in Kingston-upon-Thames, by 4% in Haringey and by 3.7% in Enfield.
For two bedroom homes the largest fall in rents was in Westminster with a decline of 5.7%, followed by Harrow which fell 3%, Bromley down by 2.6%, Redbridge by 1.3% and Enfield by 1.3%.