Rents in London pass £1,500 barrier

Landlords are raking in an average of £1,500 a month from tenants renting homes in London, according to HomeLet’s latest rental index.

rent rises
New data shows rental costs over past three months rise five times faster than tenant income

Outside the capital, rents have risen 12.5% over the past year with tenants now paying an average of £751 a month.

The survey also shows rental costs over the past three months has gone up five times faster than tenant income as demand for good quality accommodation outstrips supply.

And landlords in London are benefiting most. Figures from building society Kent Reliance show the number of people renting in the capital has increased in the past 10 years from 15% of households to 28%.

There are now 933,000 rental homes in the capital alone, according to Kent Reliance, which says that in the past year 77% of all new households created have turned to the private rented sector for their accommodation.