New figures from Zoopla show that the average rent in London has increased by 6.4% in the past year, hitting £2,119 in February 2024. While rents have been increasing around the UK – along with the wider cost of living – London’s rental market has always been unique due to its sheer scale.
The team at Housing Hand – the UK’s largest rental guarantor service – has over a decade of first-hand experience of working with tenants and landlords in London. The company provides guarantor services to tenants, which mean that landlords continue to receive rent even if the tenant’s circumstances change and they become unable to pay.
The guarantor service benefits both landlords and tenants, providing peace of mind on both sides of the rental agreement. This is particularly important in London, where competition for rental properties can be intense. Housing Hand Chief Operating Officer Graham Hayward explains:
“London’s property market is very different to the rest of the UK. We work with renters and landlords up and down the country, but the sheer scale of London’s market, along with the outrageous cost of accommodation there, makes the city unique. Renters competing to secure the accommodation they need must often convince landlords that they are the right tenant to take on. Coming to the table having already organised the reassurance of guaranteed rent payments certainly helps tenants demonstrate how responsible they are.”
A survey by Business Name Generator (BNG) in 2022 found that the average London one-way commute was 47 minutes. With accommodation costing so much, many renters live on the outskirts of the capital and commute in to work, having been priced out of living closer to the office. Housing Hand has seen a trend of workers gradually moving further and further out over the past decade, though renters have to carefully balance the cost of commuting from further out with the cost of renting further in – the same BNG study found ranked London as one of the worst cities in the world for commuters. Of the ten worst cities, London’s transport costs were the highest.
High rents and travel costs aren’t just an issue for working professionals. Many students in London struggle with balancing accommodation and transport costs. This can have a particularly negative impact on certain demographics that already face additional barriers to university attendance, such as care experienced and estranged students. As a result, several London universities – such as Ravensbourne and Goldsmiths – are partnering with Housing Hand to on care estranged programmes specifically designed to make universities more accessible.
“Whether you’re a student or a working professional, renting in London can be a challenge,” concludes Graham Hayward. “However, there are services out there that can help. And with worries about renting taken care of, tenants are free to enjoy life in one of the world’s most vibrant and exciting cities.”
- L Taylor