The changing pattern of rent levels in London
The changing pattern of rents in London
There are some "milestone" statistics for top-end property. For developers building new homes in London it is £1,000 per square foot. For renting, £500 per week for a 2 bed is a pretty good benchmark figure.
The proportion of London postcodes where the average rent for a two-bedroom property is over £400 per week has increased dramatically over the last three years. In 2010 25% of postcodes had rents over £400 per week. In 2012 this figure has risen to 37%.
The pattern of growth is even more pronounced for properties at the highest end of the rental spectrum. In 2010 6% of postcodes had average rents of £500 per week or more for a two-bedroom property. In 2012 the figure is nearly 14%.
To put these rent levels in context, if a household spends 35% of its income on rent, £400 per week requires a household income of £60,000 while £500 per week requires £74,000.
Despite this growth, the majority London postcodes have an average of £300-399 for two-bedrooms properties. For more detailed information on rents across London, please see our previous article Rents in London in 2012.
If you spend £500 per week, what % of your income is this?