A recent article in the Evening Standard suggests that average London rents are forecast to increase by 24.5% by the end of 2021, compared to a 19% increase in the rest of the country.
They suggested that the renewed stress on rental prices will be caused by potential first-time buyers being forced to rent as housing market conditions will get tougher. However, there are expectations that interest rates will remain low for some time yet, keeping borrowing costs low, which should prevent house prices from falling across the country generally.
“Despite the gloomy predictions, the average property value in London, currently £481,000, and is expected to increase by 11 per cent over the next five years. (That means the average property in the capital by the end of 2021 is expected to be worth £533,400)” the article suggests.