Renting in the Capital costs far more than official data suggests – with research from estate agent Benham and Reeves revealing that the current cost of renting across the London is 37% or £613 more per month than official statistics suggest.

Benham and Reeves analysed the current cost of renting across each borough of London based on the asking rent for those properties that are currently available to rent on the market, comparing this data to the official figures curated by the Office for National Statistics (ONS) to calculate the reality gap facing tenants navigating today’s market.

The research shows that the average London rent is currently £1,672 per month having increased by 4.7% in the last year.

RENT REALITY GAP

However, based on the average asking rent of properties currently available on the market, the actual average cost of renting in London is £2,285 per month, some 36.6%, or £613, higher than stated by the ONS.

London’s biggest rent price reality gap is in the City of London where, at £3,606 per month, the real cost of renting is £1,702 higher than that stated by the ONS.

In Kensington & Chelsea, the reality gap is £1,333 per month, while in Westminster it’s £1,264.

The rental reality gap also surpasses £900 in Wandsworth (£904), Camden (£903), and Hammersmith & Fulham (£901).

London’s smallest rental reality gaps are found in Redbridge (£240), Bexley (£248), and Harrow (£298), although tenants can still expect to pay more than they may have budgeted when researching the market.

Marc von Grundherr, Benham and Reeves Director, says: “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.”

AN EXTREME CASE IN POINT!

Glenfield Property Management is one company reaping the benefits of the boom – sourcing a luxury house in Notting Hill for £27,000 per week for a US client from California.

The family were coming to London for work purposes and wanted a prime central London property (pictured) that would suit their lifestyle and two children.

Yasmin Ulhaq, Glenfield Property Management Director, says: “Despite UK economy prices dropping the high-net worth residential property sector is booming.”