In November, rents in London increased to an average of £1,177 per month the latest HomeLet Rental Index has revealed. The increase in rental amounts in London means that costs are now 13% higher than last year which is in stark contrast to rents in the other UK regions that are only an average of 1.6%more than at the same time in 2010.

Although most other UK regions have seen an increase in rents over the past year, they are quite minimal compared to the increases in London. Increases range from 0.2% in the North West and almost 6% in East Anglia. The only regions that have seen average rental amounts decrease are Northern Ireland, the North East, and Scotland, which have dropped by an average of almost 2% over the past 12 months.

Commenting on the latest data, John Boyle, Managing Director of HomeLet, said: “The soaring cost of renting a home in the Capital, compared to the rest of the UK, reflects how demand for rental properties is increasing due to people’s continuing struggle to get onto the property ladder. Combined with the current Eurozone issue, this economic uncertainty could result in the demand for rental properties increase, and cause rental amounts to soar even further. Traditionally demand for rented homes dips before Christmas – however, London is bucking this trend and demand is higher than ever.

“This demand offers a fantastic opportunity for landlords and property investors who could offer a much needed supply of rental properties to the industry.”