Priced out: London renters continue to look outside the capital for affordable housing
Londoners continue to be priced out of the city as 2023 saw an uptick in those looking to secure more affordable rents away from the capital.
The latest data from Rightmove shows some 45 per cent of Londoners enquired to leave the city last year, compared to 40 per cent in 2022.
Rents in London jumped at their fastest rate since 2006 in October, rising 6.8 per cent on the same month last year, according to figures from the Office for National Statistics.
Richard Donnell, executive director at Zoopla, said: “London’s housing remains the most expensive across the UK but prices have started to realign with incomes and housing is more affordable compared to recent highs.
“Flats will remain the property type that provides the best value for money in 2024. There’s also a promising outlook for renters with rental growth in London expected to slow to low single digits from the high of 17 per cent seen a year ago.”
Just last month, a number of top business groups warned that soaring rents in London pose a “threat” to the capital’s competitiveness amid fears that young professionals are increasingly being priced out of the capital.
Tim Bannister, Rightmove’s property expert, said London was one of many areas across the UK that saw an increase in asking prices, despite the “more muted market” of 2023.
However, despite the data suggesting worries about competition, availability and prices, London once again took the number one spot as the “most searched-for” location.
Bannister added: “Whilst a garden, garage and more land remain high priorities for those searching for a move, we also know from our research that more intangible factors are key to home-hunters when deciding on a move.
“A strong sense of community, friendly neighbours and an area people can feel happy in are some of the most important things movers are looking for.”