Research claims rent for two-bed London property to hit £2k by summer

Research claims rent for two-bed London property to hit £2k by summer

The price of renting a two-bedroom property in London could reach as high as £2,000 per calendar month by the end of summer if previous years are any indicator, it has been claimed. 

At the moment, those renting two-bedroom London homes are paying an average of some £1,867 per calendar month. However, this has already risen by as much as two per cent since the start of the year as demand for rental homes in the capital ramps up, Portico has reported. 

And it said that based on data from previous years, the end of summer in September marks the highest point of the year for rental prices. Typically, new tenancies cost 11 per cent more in September than they do in April. With that in mind, Portico believes that by the end of summer, the price of two-bedroom rental properties will have reached £2,008. 

With two people sharing, Portico said, this would represent some £1,004 per calendar month each, which would mean the average Londoner spending as much as 46 per cent of their income on rent alone. 

"The majority of London boroughs are seeing rent increases anywhere from one per cent to almost seven per cent, 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.

At the moment, however, there are large differences in the performance of boroughs across London, with some seeing prices rising quickly, and others witnessing falling rental costs for two-bedroom properties. 

For example, Ealing has the quickest rising prices for this type of home at 6.9 per cent since the start of the year, followed by Richmond-Upon-Thames and Lambeth at six per cent and 5.8 per cent respectively. 

On the flipside, however, rents for this type of property are falling in Westminster and Kensington and Chelsea and a number of other London boroughs.