New research from London lettings and estate agent Benham and Reeves reveals that the actual cost of renting in the capital is 37% or £613 more per month than official statistics indicate.
The study compared the average asking rent for properties currently available on the market across each London borough to the official figures provided by the Office for National Statistics (ONS).
While the ONS reports that the average London rent is £1,672 per month, the actual average cost of renting in London, based on properties currently available, is £2,285 per month – 36.6% or £613 higher than the ONS figure.
The biggest rent price reality gaps are in the City of London (£1,702), Kensington & Chelsea (£1,333), and Westminster (£1,264).
Marc von Grundherr, director of Benham and Reeves, said: “The London rental market is performing incredibly well at the moment.
“Demand is high with students and city professionals returning to the capital after the pandemic.
“Furthermore, foreign buyers are using the rental market to try before they buy and this is adding an additional layer of demand.”
Von Grundherr added that many people might be entering the market with unrealistic expectations about what they can afford to rent, as government rental data lags behind current rental prices.
He advised those looking to rent to ensure they have enough to cover higher-than-expected costs or be prepared to search in more affordable areas.
