The rent you receive will be offset by your buy-to-let mortgage, if you have one. But understanding rent prices in London also helps you work out potential rental yield, as well as set prices that influence who your property (or properties) will appeal to.
Knowing the average rent in London is important for buy-to-let landlords, especially if you’re thinking about purchasing a property.
HOW MUCH IS RENT IN LONDON?
According to HomeLet, the average rent in London for new tenancies is £1,572 a month. HomeLet also says that rents in London have decreased by 4.7 per cent compared to last year.
For a more detailed map of London rent prices, visit london.gov.uk and explore average rent by postcode.
IMPACT OF COVID-19 LONDON RENTAL PRICES DECLINE
Due to the impact of Covid-19, and London has been one of the hardest hit cities over the last 12 months.
There has also been a general desire to move out of cities into areas with more space.
That said, while central areas are showing a decline in average rental price, some outer London boroughs are showing rental growth.
RENT AVERAGE: ROOMS - STUDIO - ONE BEDROOM
Single rooms and one bedroom and studio properties are often popular with young professionals.
Low rental prices can often be a boon for these sorts of properties, as they’re likely to appeal to those who are renting by themselves.
If you’re looking to appeal to young professionals, properties in those areas with good transport links could be a worthwhile investment.
RENT AVERAGE: TWO & THREE BEDROOMS
Two and three bedroom properties have a varied audience. From families to sharers, the type of tenants you’re likely to get in these properties will depend more on other features.
A simple way to calculate rental yield is by taking the yearly rental income and dividing it by the purchase price and costs.
RENT AVERAGE: FOUR & MORE BEDROOMS
Four or more bedroom properties can be trickier to rent, and are often more likely to be occupied by students and sharers than families.
The usual suspects featured above also dominate the highest and lowest average monthly rents for four or more bedrooms.