Rents in London are surging at unprecedented rates, with official figures showing rent inflation reaching nearly 12% in the 12 months to November 2024. This sharp increase is putting additional strain on individuals and families struggling to find affordable housing in the capital.
London Rent Prices Surge as Regional Disparities Widen
According to the Office for National Statistics (ONS), rent prices in London saw an annual growth of 11.6% by November 2024, a rise from 10.4% in October. The ONS noted that this marks a new record for rent inflation in the city, largely driven by two consecutive months of significant rent hikes.
The disparity between London and other regions is stark. In November 2024, the average rent in London was £2,206, the highest in the country. Meanwhile, in the North East, rents were the lowest, averaging around £700.
House Prices Show Slow Growth in the Capital
While rents in London continue to rise sharply, house price inflation has been comparatively sluggish. The ONS reported that house prices in London grew by only 0.2% in the year to October 2024, though this was an improvement from a slight decline of 0.3% the previous month.
The average house price in London is now £520,000, significantly higher than the national average and out of reach for many families. By contrast, house price growth was strongest in the North East, with a rise of 4.7% over the same period.
Nationally, average house prices have risen as follows:
- England: £309,000 (+3.0%)
- Wales: £222,000 (+4.0%)
- Scotland: £197,000 (+5.5%)
Rising Rent Prices Amidst Overall Inflation
The surge in rent prices coincides with a rise in overall inflation, which hit 2.6% in November 2024, driven largely by higher petrol costs. Meanwhile, average rental prices across Great Britain reached approximately £1,300 per month, with London once again leading the way in rental inflation.
The government has pledged to address the housing crisis by building 1.5 million new homes during this parliamentary term, aiming to ease pressure on housing markets in London and across the UK.
Affordability Crisis: Soaring Rents vs. Stagnant House Prices
The contrasting trends in rent and house prices in London underscore the ongoing challenges of housing affordability. Rental prices have risen sharply, increasing costs for tenants, while house price growth has slowed, limiting opportunities for first-time buyers to enter the market.
With London experiencing the highest rent inflation in the UK, questions remain over the impact and timing of government measures aimed at tackling the housing crisis.
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