By the end of 2023, rents are expected to rise in London according to real estate expert Nick Millican. New reports indicate a significant 7% increase in rent in London, notably higher than in other UK regions. The high demand and lowered supply of rental properties in the city have caused the increase.
Many landlords have been pushed to sell their properties due to corrective tax rises. As a result, very few tenants are able to buy their own homes as workers crowd the offices. Nick Millican, a household name in the real estate industry in London, still believes there’s still hope for the industry.
It is expected the rent in London will rise over the next five years. In the UK overall, the rental rate it’s expected to rise to around 22.2%, while in London, it’s projected to increase by 23.3%. As the rent rises, Nick Millican reports, real estate dealers are suffering because there’s a fall in house buyers.
The average London rent is about £2,287 per month, with inner London at £3,055 and outer London at £2,141. These hikes might be advantageous to landlords, but they are a nightmare to tenants (Crunchbase).
Young people are increasingly moving back home or renting outside the capital despite wage growth. Nick Millican, a decades-long real estate veteran, has weathered industry ups and downs and hopes this is a won battle, too. Homeowners planning to sell their homes are now considering renting them while waiting for prices to rise. There’s a prediction that London is set to rise to approximately 5.5 percent by the end of the year.