Crisis of real estate in London

The amount of rented housing declines in the center of London and increases in the suburbs. A study conducted by Hamptons International showed that homeowners sell expensive metropolitan buildings and buy real estate at the outskirts.

The total number of apartments that can be rented in London, decreased by 17% year on year, but the demand for metropolitan real estate continues to grow steadily. This situation led to an increase in rental charge. "While the amount of rented housing is decreasing, and the demand for it remains the same, tenants are at a disadvantage. Rental charge for London housing has jumped in July this year and continues to grow," - said David Fell, analyst at Hamptons International.

In Kensington, Islington, Westminster and Camden, the number of rented apartments fell by one third, and rental rates, on the contrary, increased. In Kensington, the average rent is £3,000 per month, in Chelsea - £3,110, in Westminster - £3,169. The average rent in Islington and Camden is significantly lower - £2,000 per month. But in remote areas such as Haverring, Haringey, Bexley and Barking, the amount of housing leased, on the contrary, has increased over the past 12 months. And this is not surprising, since the average rent here is much lower than in the center of London. For example, in Bexley it is £1,100.

Recent studies conducted by the National Landlords Association show that 84% of landlords do not plan to buy housing after last year's state fees were increased. In his turn, David Fell, analyst at Hamptons International, said that now more and more homeowners sell real estate in London, since after the tax breaks on mortgage payments were took off in April, their incomes dropped significantly. Nevertheless, landlords do not leave the rental market. But now their interests have changed: instead of real estate in the city center, they buy houses in the suburbs.

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