The average house price for the UK has benefitted from the constant growth of house prices in London joining into the average.  Without averaging in the London area the overall average house price for the UK would be much worse off.  The good news is that the London area is thriving when it comes to selling properties but the bad news is that London is doing so well while other areas are not.  It is both a blessing and a curse due to the fact that while other areas have prices that better reflect the current economy and mortgage lending market the London area is still very pricey for the average home buyer.

The lack of ability to afford a property purchase in London and close outlying areas is pushing the demand for rental property higher.  In August the rental average for London increased once more and is now at a record level of £1074 per month.  The data from Reeds Rain and Your Move owner LSL Property Services also revealed that the increase was the fastest rise in rental fees in London and the South East when compared to August 2012.  Rents rose by 4.9% when compared month to month and year to year the rental fee average in London rose 3.9%.

LSL director David Newnes said, “The rental market is right in the thick of its peak season, and the demand from graduates and those starting new jobs has added a new layer of competition on top of the existing pool of frustrated buyers.  London and the South East may be the powerhouses of the national rental market, but rent rises haven’t been limited to these areas by any means.”