48% of tenants fleeing London head to the Midlands or the North to rent
The latest report by Countrywide shows that a large proportion, or 78%, of tenants have moved out of the capital in the last 12-months to rent elsewhere, with just 22% leaving to buy a home – representing a significant shift from 2007 when 51% of tenants left to climb the property ladder.
Figures show a total exodus of 64,672 renters in the last 12 months, the highest number in the last decade, claims the letting agency.
With more and more people opting to rent outside of the capital, rents across its surrounding regions rose at the fastest pace, as the South West, South East and East of England saw their annual rental inflation increase by 3.3%, 1.9% and 1.7% respectively.
Those abandoning London have also been relocating to the northern regions, with data showing 48% of the capital’s leavers heading towards the Midlands and the North over the last year - a 17% increase from 2007.
Across the UK, rents were found to have increased 1.1% in the last 12-months, with the average now standing at £978.
According to Countrywide, rental inflation over the year has been more prominent in southern regions, where a greater undersupply of properties supported growth in the sector.
Commenting on the research, research director at Countrywide, Johnny Morris said:
“For people in their 30s leaving London is something of a rite of passage. But as the number of those renting has grown the move out of London is increasingly likely to be in the rental market.
“A decade ago most tenants moving out of the capital did so to buy. But since 2007 leaving London to carry on renting somewhere else has become more typical”.
Last week, research conducted by the Office for National Statistics (ONS) pointed to a 98% growth in the cost of a square metre of space in the capital between 2004 and 2016, as London remains the most expensive place to buy property in the UK.