London’s average rents have increased 7% annually to £1,456; leaving them considerably higher than the national average of £781.
According to the latest figures from Sequence’s London and National Housing index tenant demand in London has increased to five applicants per property.
Stephen Nation, Head of Lettings, Sequence Group, said: “As the sales market ignites the rental market continues to grow. The flexibility of renting remains attractive to tenants although we are noticing that renters are looking for more security in this fiercely competitive market.
“This has pushed the average length of tenancies from 12 to 19 months. “New agreed tenancies are at a three year high with levels of demand up 9% annually across the UK and average national rents are also up 11% annually.
“The buoyancy of the market and low interest rates are continuing to attract buy-to-let investors in their droves, with the number of applications for buy-to-let mortgages up an unprecedented 46% annually, which is the largest annual growth for three years.
“This growth should impact supply over the coming months so we expect to see the number of properties available increase before the end of the year.”