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Average London Rent Hits Record High

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There is a lot of noise at the moment around the UK government, the cost of living, and house prices. It is clear to say that every day seems to be different. As a result of this sadly, 1 in 4 young renters have reported that they are thinking of moving away from London due to the cost of living. With rent and house prices being higher than ever before.

Research shows that the average weekly rent price in London has increased to £553. With the average advertised rent prices increasing by 16.1% over the past year. Charitable foundation Trust for London found that between April 2021 and March 2022 the average rent for a one-bedroom property cost the equivalent of 46.3% of the gross-median pay in London, compared to 26.4% for the rest of England.

London, estate agent Foxtons stated that the increase was due to a combination of demand and a shortage of rental properties. Estimating that of the 23,000 rental properties that came on the market, in September 2022, there would be 29 people competing for one singular property. Furthermore, SpareRoom, a site that helps people looking for flatmates, found that more than seven people are competing for each available space in London. This is almost double the rate compared to the rest of the country. Lastly, Rightmove found there were 9% fewer available properties on the market, with demand for rentals increasing by 20% overall. Therefore, the demand is high however, the number of rental houses and flats in London is down.

Pocket Living build flats for first-time buyers and surveyed 1,000 renters aged 25-45. They found that within the first 12 months, 27% of renters were considering leaving London. Marc Vlessing, Pocket Living’s chief executive, said the situation was “one of the clearest indicators that London faces being gradually leveled down”. However, whilst London has the highest rent in the UK in other places such as Bolton, Walsall, and Salford, they have seen affordability drop the most since the pandemic.

The average price of a property in the UK has nearly tripled in the last 22 years and has increased by more than 60% over the past 10 years. It is difficult to see what the future holds for the housing market in the UK, especially over the long term.  However, many housing experts believe there is a critical requirement for more affordable housing and for developers to build more buy-to-let houses.

Development Finance With BLG

According to recent research, about 145,000 affordable homes will need to be built annually for the next five years to address the UK’s housing crisis. BLG is a leading principal lending specialist in property development finance, we are positioned to help you. Providing residential and commercial finance ranging from £1 million to £15 million we have the ideal skill set to lend and advise. Priding ourselves on fast decisions and flexible terms we can aid you through these turbulent times. Contact our financial experts today who will take the time to get to know you and your aims.

 

 

 

 

WHAT OUR CUSTOMERS SAY ABOUT US

“We have used BLG for development finance for over 8 years. During that time we have found their knowledge and expertise in the property development industry to be second to none. Their loan process, pragmatic and flexible approach to lending and flexibility when required has supported our business needs throughout the period and provided us with support to deliver new homes in Bristol and the surrounding areas.”

“As property developers you never know the curve balls that you may get and a project that is great on paper may prove a bit more tricky.  This happened to us on a project that BLG have funded and throughout they have supported us.  Our business likes to be collaborative and when we hit those tough moments it really felt like we were working as a team with BLG.  If you have a decent project you can get it funded, but what you really need is a business that is there to support and advise you as well.  For us on this project it was BLG.”

“I approached BLG Development finance with an opportunity I had in Chesham, Buckinghamshire, to build 5 new build houses in 2021. My main contact was Anil Bains who is a Director covering Asset Management. Within very quick timescales, BLG provided me with indicative quotes in regards the finance levels they could offer me. Having considered those levels, I requested a valuation to be carried out which again was dealt with swiftly. We proceeded to completion. The build went very smoothly with monthly monitoring being carried out by BLG and monthly drawdown requests dealt with in a very timely manner. Due to a difficult time generally in the market in regards selling, I was in need of a six-month extension to the loan which again was appraised very quickly and granted. Having dealt with numerous funders over the last 20 years, I can only speak highly of my personal experience with BLG and would very confidently work with them again on any future projects. “

"From our side it has also been a pleasure working with BLG and the team there. We have found you easy to deal with, proactive in resolving any minor issues that have arisen through the project and shown great flexibility in working with us as a partner. We will certainly like to work with you on future partners."

“I really appreciate your hard work. We really like the way you communicate & I must say I haven't seen many people who are that approachable.”

“A very efficient processing team, dealing with the DD once deal credit approved, through to completion”

“Many thanks for your efforts on this one and getting it approved and sorted so swiftly, very much appreciated. I am sure I will be speaking to your over the coming months.”

“We had other funding options, but chose to use BLG again, as we work well with the team, who always provide very clear information and advice with a friendly approach throughout the funding process. Very efficient and always very helpful.”

“Many thanks Anil, it’s been a real pleasure working with BLG so far.  We’re lining up the next project too”

“We would recommend all staff we have dealt with at BLG, as we are very satisfied with the team and the initial offer/terms presented, then you and the funding team, through to the draw down team at valuation stage.”

“All documents are clear and the way you keep clients informed, all the way along the funding process, is refreshing for us”

“With regard to what should be improved at BLG, we work with many lenders in our business and we do not get the help and response we have had on the two projects with all at BLG on our funding for our developments.”

“We would particularly mention Dave Edwards and Tom Pitts as being central to having a smooth working relationship and being positive and helpful at all times. Their guidance in helping us navigate the project from inception to completion was invaluable. As was their patience, particularly at the beginning. We look forward to many future projects with the BLG team.”

“We would like to express our appreciation for your support on our development in Bristol. We were very pleased that, from the outset, you shared our vision of the project to convert a dated but classical building, that had outlived its usefulness as a school, into unique luxury apartments with views overlooking the city. We found our dealings practical and streamlined. Monthly payments were processed in an efficient and timely manner.”

“BLG are very good at communicating with clients and all documents are very clear and all at BLG are always happy to help.”

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