Simon Morris is an independent, London-based property expert who acts in an advisory capacity to UK property investment funds on how best to reap high returns from their property portfolios. In this blogpost Simon looks at the cost of renting in London and beyond.
According to the Yorkshire Post, London property rentals are already double the rest of the UK. Rental costs on average this year are up 6.3% and now stand at £862 per calendar month compared to £811 per month last year
Rental costs in the capital
Tenants in London are looking at an average monthly rental cost of £1,412 compared to £694 for the rest of the UK (with London excluded). The Yorkshire Evening post believes that with these sorts of rental costs, London could be in danger of crossing a boundary where rents become unaffordable to many.
The average rental price per month in Yorkshire is around £600, but other northern regions have even seen falls in rental costs, these include North East England and Scotland.
Paying a premium for the capital
Simple economics dictates that rental values rise and fall based on supply and demand, London is the capital of the UK and affords jobs and opportunities that may not be available in other parts of the UK. As long as people continue to flock to London to take advantage of what the city has to offer, rents will still rise.
Investors in property based in the capital continue to see opportunities for yield and further gains.
Learning about the property market
There’s so much interest in the residential and commercial property market at the moment that I’ve launched the Simon Morris Property Investment Guide. It’s a free guide that you can read online or download. The guide is designed to help regular readers of the Simon Morris blog to get their head around the different types of property investment and different types of property investment vehicle, including funds and bonds.
It’s always vital to take advice from an independent specialist before making any investment, it’s also vital to measure your exposure to risk. If you want to learn more about investing in property read the guide and then, like all discerning investors, make sure you do plenty of research before making a decision.