A new research recently released found that the average monthly rent for a two bedroom home in London is expected to pass the £2,000 mark. In a report from PropertyWire, the said level would be reached by summer of 2016.
As of the moment, the average rental cost is at £1,867 per month. This was 2 percent higher from prices at the start of 2015 as observed by real estate agent Portico's London Rental Market Report. In the said report, based on its historical data, two bedroom homes would reach £2,008 per calendar month by the time September comes around.
At this level, two people would need to pay £1,004 per month for rent. This is about 46 percent of the average monthly salary in London after taxes have been deducted.
In a previous report, it was also found that council homes for rent prices have risen four times faster than average wages in the past five years. According to a report from Independent, the very quick pace of increases had been higher than private sector rental increases. This in effect would put greater demand on an already overburdened welfare program.
Data from the UK Department for Communities and Local Governments indicated that the average weekly rental for a council home in England had jumped by 27 percent from 2010 to 2011. This is about an increase between £67.83 and £85.89 per week or an annualized increase of £939.
On the other hand, weekly earnings had risen just 6 percent between 2010 and 2011. Private rentals, for the same period, only rose by 11.5 percent on average.
For its part, a spokesperson from the Redditch Borough Council disputed the figures from the government agency. According to the council, rents had increased only by a quarter in the last five years.