Their figures suggest that the average cost of renting a home in London increased by 6.9 per cent compared to the same period last year to £1,212 per month. Meanwhile, average rents in the North East increased by only 0.8 per cent to £523 per month making it the least expensive region in the UK to rent a home.
Average rents within the 12 areas within Greater London range from £779 per month in Dartford to £1,689 per month in West London (or 223% more expensive than the North East).
Around the rest of the UK, the average cost of renting a home increased by 4.7 per cent from December 2011 to £782 per month.
Ian Fraser, HomeLet’s Managing Director, said: “The high level of overseas investors in London’s property market has helped to drive property prices up, particularly for residential homes in the more exclusive boroughs. But the growing demand for rented property throughout the Capital is really driving an increase in rental values – with rising rents offering an increasingly attractive return for those who have the capital to invest in property.
“As confidence and demand in the private rented sector grows, so will overseas investment, and landlords will continue to maximise the return from their properties. However, this may also increase the purchase value of homes within these areas, and consequently affect people’s ability to become a home owner thereby driving demand for rental homes, and average rents, even higher.