Analysis of the rental market of London

The rental market of real estate of London is undergoing significant changes. More than half of Londoners now rent my own place.

Studies conducted in the rental market of London, held for consultants Cluttons showed that homeownership decline and 36% of Londoners aged 20 to 40 years are clients of very modest market rental housing.

Almost 50% of the population of London currently rents their apartments or houses, although in the whole country, this figure has increased 30% data is based on an independent report prepared by Professor Mitchell Ball, of reading University. In the study the Professor also shows that over the past 10 years there has been an 80 percent increase in rents, with the bulk of this increase came in the period after 2005.

The difference in rental rates between the private sector in London and the social recruitment of almost two times.

Meanwhile, significantly reduced the number of people who have their own housing. The reason for such dynamics was the internal migration to London, a reduction in the average size of the family and the obvious barriers, which is primarily expressed in the significantly increased cost of purchasing your own home.

The report stresses that the mostly young people choose long-term lease, especially if they have a job and they plan to stay in town for long term or want of certainty in life and are not willing to make the long journey to work from other cities outside of London. Given that the cost of such rent is quite high, especially at the stage of conclusion of the contract, it is quite obvious that the young man who committed such a deal, can not purchase their own homes.

The situation with long-term lease has now become generally accepted that is an indicator of fundamental changes in the relationship. An increase in the number of quite wealthy parents who are happy to raise their children in rented apartments and houses, very slowly to make steps in acquiring their own homes.

There is an increasing gap between those who have the choice of place of residence highly value the proximity and convenience and those who are very sensitive to the rising cost of housing, and choosing your life style, prefer a compromise, preferring the more economical option.

In addition, London has a huge concentration of students from around the world who definitely have contributed to the increase in demand for rental.

® Helen Entree. 27.05.2013