The latest figures in the HomeLet Rental Index have revealed that properties in Greater London now command an average monthly rent of GBP 1,206 - their highest recorded level. Despite the rest of the UK experiencing a marginal decline in rental values from August to September, the capital saw its 11th consecutive month of price hikes in the sector.
According to the organisation, tenants in London may be feeling the pinch, as rents have climbed by nine per cent since September 2010, while average incomes have only risen by 4.5 per cent during the same timeframe. John Boyle, HomeLet managing director, commented: "Rents in London only increased by 0.33 per cent this month. This may not seem significant, but it's out of character with the dip in rents we normally see in the capital at this time of year."
It is not only rents that have been rising in the city - average house prices have also been steadily increasing, with the most recent data published by the Land Registry showing that capital values for properties in London were up by 2.1 per cent in August, compared to a year earlier, with the average cost of a home now GBP 348,686.