Rents in Swindon are rising four times faster than London, new figures reveal.
As reported on MindfulMoney.co.uk the latest rental index from SpareRoom.co.uk, shows that, of the UK’s 50 biggest towns and cities, rents in Swindon are rising fastest at 13% followed by other town and cities easily commutable to the capital, Luton (12%), Bristol (11%) and Reading (10%).
The average monthly rent for a room in Swindon was £452 by the end of last year, while in Luton it was £443, Bristol £465 and Reading £548.
As a whole UK rent rises are gaining pace as room rents rose 4.7% between 2013 and 2014, and 5.5% between 2014 and 2015. London on its own however, rent rises are slowing. They rose 9.5% between 2013 and 2014 but only 3.5% between 2014 and 2015.
The average monthly cost of renting a room in the capital was £743 by the end of last year.
Matt Hutchinson, director of SpareRoom.co.uk, says: “We’ve reached the point where London room rents are so high some tenants can’t afford to live there.
“Renters are naturally drawn to the next best thing – the commuter belt – where accommodation savings hopefully outweigh the higher travel costs. “But that extra demand in London satellite towns like Harlow, where nine people are searching for every room available, means prices are rising sharply year on year there too.
“It’s a matter of when, not if, the commuter belt will become unaffordable for lower-paid Londoners, like the service workers who keep the capital ticking. “We either need to drastically increase supply in London or start creating more jobs in other areas of the UK to spread the demand for housing more widely. In truth we probably need to do both.
“In the meantime, renting as a lodger, is a good way for tenants to save on their outgoings. With lodger rents more likely to include bills, they’re generally better value for money than rents charged by traditional landlords, especially in London.”
See the full story with links to more stats at: http://www.mindfulmoney.co.uk