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.