Rental costs in London set to rise by 7% by 2025

The cost of renting homes in the UK capital could rise by as much as 7% in the next three years. This is the projection of rental platform Rentd, which has used data from the rental market in different boroughs of London over the last decade to forecast what the picture will look like in 2025.

The research shows that the average cost to rent a property in London is currently £1,629 a month. After inflation of 24% in the last ten years has been considered, the average annual rate growth in rental cost in London is 2.4%.

The data shows cost increases vary significantly from one borough in the capital to the next.

The rental platform estimated that Kingston upon Thames could be poised to see the largest rise in the next three years. The average cost of renting a home in Kingston upon Thames, which has witnessed a 59% increase in rental costs in the last year, is currently £1,516 a month. By 2025, this is forecast to rise to an average of £1,783 a month, putting an additional £3,171 to the annual cost of renting in Kingston upon Thames.

The borough of Newham is also forecast to see a sharp rise of 17%, meaning tenants will be paying an extra £3,088 a year in rent, according to Rentd’s predictions.

Other boroughs set to see steep rises in rental costs are Barking and Dagenham, Waltham Forest, Richmond and Greenwich, as well as Richmond, Wandsworth, and Hackney.

Commenting on the rising costs, Ahmed Gamal, founder and CEO of Rentd said: “The cost of renting within London has increased considerably over the last decade, driven by a sustained level of tenant demand, not just because the cost of buying is so high, but also due to a move towards long-term renting as a lifestyle choice, not just a necessity.”

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