Soaring property prices in London are making renting very attractive compared to buying. In almost every London boroughbarring the Barking and Dagenham localities, this is a fact.
In 2013, property prices in London jumped 9.4 per cent, according to official figures. In the case of rents, there is a certain plateauing and in some areas it is falling.
According to a columnist in the Forbes, the average asking price for homes that came on the market in August 2014 is 2.9 per cent lower than July, indicating softening of prices. He was quoting the property website Rightmove for that.
Generally, asking prices do fall in summer but a drop in is the fall out of new sellers coming in at lower prices with more supply of homes on the market forcing prices to be more competitive.
Among the four boroughs, renting is cheaper. They include Ealing, Southwark, Lewisham and Greenwich. A survey says that 23 out of 32 boroughs have renting costs almost 10 per cent less than buying. This was revealed in the research by Countrywide estate agency.
According to Nick Dunning, Countrywide’s group commercial director, the average tenant in London is 16 per cent better off than a buyer, in raising a 10 per cent deposit.
An additional £600 saving has come over in the past 12 months. The cost of renting vis a vis buying has fallen substantially as house prices are going up.
Drivers of Property Prices
Migration is the main driver for sale and rental markets in London. The housing prices are outstripping the growth in average monthly rents across London.
Institutional investment in the private rented sector, have not helped. It pushed up rents. The annual rent with a repayment bill for 25-year mortgage on a home needs 10 per cent deposit. Here median priced property and median rent are used in making the comparisons. It found the mortgage rate to be 4.5 per cent. It also found that across London, the median annual rent of £16,692 was 20 per cent below the median annual mortgage payment of £20,919.
Rental Flats in London
London as the popular destination for leisure, business, and education attracts millions of visitors of all income classes. The rents vary, depending upon many factors. But there is something to suit every budget.
Long Term Rentals Flats in London assures stability to both renter and landlord. This implies London residential properties have pieces that suit every pocket. Important factors to consider when looking for a flat to rent in London will include….
Location: Location plays an important role in deciding the cost of rent. A variety of properties to rent in London are apartments or flats. They may be in high-end areas such as Hyde Park, Notting Hill, Mayfair, etc. But affordable properties are available in London’s suburbs.
It is imperative to have a budget so that you can decide on a residential property accordingly.
Transport Links: The index of popular appeal to any London region is its transportation links. This helps to know how easily you can reach the work place or educational institution. So, choose an area that is close to good local travel links and never waste time in travelling every day.
Amenities: Any locality becomes good enough to live when there are amenities in the locality such as shops, restaurants, bars, hospital, theaters and libraries.