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London rent double that outside the capital

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London rent now double that outside capital Credit: Reuters

For the first time ever, the cost of renting in London is double what it costs across the rest of the UK.

New figures from the HomeLet Rental Index show the average rent in the capital is now £1,412, compared to £694 elsewhere.

It also revealed rent in London has increased 11.2% in the last 12 months.

Businesses evicted to build new homes

A growing number of businesses in London are being evicted so their buildings can be turned into flats.

It follows a change to the law, which means full planning permission is no longer needed to convert commercial property in new homes.

Some councils are now criticising developers taking advantage of the situation to make a profit from the capital's booming housing prices.

Islington Council's executive member for housing and development, Councillor James Murray, said: "I'm very frustrated by the planning minister's decision to stop us doing what's right for Islington.

"We're already seeing small businesses and charities being evicted from offices to make way for bedsits. People in Islington are losing out on jobs, affordable housing, and any community benefit."

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'Help to Buy' has less impact in London and South East

The government's flagship policy to help would-be home buyers is having the least impact in London and the South East across the whole country, according to a committee of MPs.

The Public Accounts Committee found that the 'Help to Buy' scheme has gained less traction in London and the surrounding region than the rest of the country, despite those areas having the greatest housing need.

It claimed that the policy has yet to prove that it will provide value for money in the long term, although it did note that the scheme had helped 13,000 home-buyers within nine months after launching last year.

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Moving to London costs twice as much as anywhere else in the UK

Moving to London costs twice as much as anywhere else in the country Credit: REUTERS/Andrew Winning

The cost of moving to the capital now costs twice as much as anywhere else in the country, according to a new report on the cost of moving house.

Higher house prices in London and the South East means homeowners pay on average more than £10,000 in stamp duty costs and £6,500 in estate agents fees.

Half of Londoners now think renting is 'the norm'

Londoners are becoming increasingly pessimistic about getting on the property ladder, with 50% saying Britain is becoming more like other places in Europe where renting is 'the norm'.

Renting in the capital is becoming 'the norm' according to a large proportion of Londonders Credit: Reuters

A new report by Halifax also found that 83% of potential homeowners in the capital are unwilling to sacrifice the quality of accommodation they currently live in order to save up for a deposit.

The report also found that one in five young people aged 23 to 27 still have no desire to own their own home, despite the introduction of the Government's Help to Buy scheme. The scheme has previously struggled with uptake in the capital, where the average house price is now £458,000.

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