Rents in London have risen at double the rate of the rest of Great Britain over the last ten years, according to Rightmove.
Its figures show that asking rents in the capital have topped an average of £2,110 per calendar month – a new record. This marks a rise of 45% since 2009, compared to a rise of 24% for the rest of the country.
Over the course of the last 12 months, asking rents in London have risen by 4.2%, compared to 2.4% outside the capital.
Rightmove attributes the acceleration of London rental prices to the ongoing shortage of property for tenants.
Commercial director Miles Shipside said: “We’ve seen a lack of rental properties coming on to the London market over the last 18 months and that keeps feeding through into rising rents and another new record this quarter.”
Also, any new supply of rental homes was constrained by a lack of new landlords put off by the additional 3% stamp duty which proves a ‘substantial sum’ against the high property prices in London.
Kate Eales, national head of lettings at Strutt & Parker, added that the tenant fees ban has also meant landlords are having to pay a ‘bit more’ for lettings services.
“This cost isn’t necessarily being passed on to tenants, but landlords are not entering the market in the same way that they were back in 2010,” she said.
Tenants are also less likely to swap one rental home for another as their options on the open market are likely to be more expensive than sticking with their current landlord, added Shipside.
While London has seen the fastest rise in asking rents, the slowest was recorded in the north-east. Tenants in the region pay 8.4% more compared to ten years ago, at an average £601 per calendar month.