Rents in London increased by 45% over 10 years

Baku. 8 July. REPORT.AZ/ Since 2004, tenants have typically spent between 32% and 37% of their wages on rent, compared to 42.2% in London.

Report informs citing the Russian media, analysts of “Hometrack” said.

In the capital, rental costs have surged 45 per cent since 2007 to reach £1,609 a month. However, in two areas - the North West and North East - rents have actually fallen, seven per cent and four per cent respectively.

Analysts believe, demand in the capital has been buoyed by employment levels rising two to three times faster than other regions, as well as the much higher deposit and household income required to buy making the transition from renting harder than in the past.'

According to experts in London affordability is stretched and demand is weakening on concerns over the outlook, which we expect will lead to average rents in the capital falling by one to two per cent in 2017.

'Conversely, rental growth outside of London is set to continue to track earnings growth with rents rising at two to three per cent a year.

'The greatest upside for rents is in the midlands and northern regions where rental affordability is the best it has been for a decade.'