More young people than ever are moving out of their family homes across the UK to rent a property in London, pushing rental prices up in the capital.
The average age of tenants in London is lower than anywhere else in the UK, new research says.
According to HomeLet, a referencing and insurance business, the number of people moving into a rented property from outside London leapt from 61% of all new tenancies in the capital in September 2009 to 86% in September 2011.
With average wages of tenants in London also increasing to £35,003 – around 25% higher than the national average – it suggests young professionals are moving into London once finishing their studies to try their luck.
Conversely, HomeLet’s statistics also show an increase in the number of tenants who lived with their parents in London and are being forced to move into rented homes outside the capital.
The average cost of renting a home in London now stands at £1,206 per month, which is 53% higher than the UK average, says HomeLet
John Boyle, managing director of HomeLet, said: “With jobs hard to come by in many areas of the UK, younger tenants may be moving to London to find work. These tenants might be more willing to share a property or in some cases share a room.
“With a higher number of tenants in a property, landlords could get a better return on their investment. But with demand for rented properties at extremely high levels, it’s important that standards do not deteriorate.”
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