This demand is also driving up rental values and the bargain rates on offer during the height of the pandemic soon look set to be a thing of the past, with the ONS showing strong upward growth since the start of the year.
So for those facing the increasing cost of city-centre living within the London rental market, rental platform, Rentd, has revealed that tenants can more than half their rental outgoings by spending a little more time on the train.
The research shows that, currently, the average cost of renting in London sits at £1,597 per month. However, this climbs to a hefty £4,975 per month for rental homes within 15 minutes of the city centre.
But by opting to take a train just 15 minutes further out of town, the capital’s tenants can reduce their rental costs by £1,746 per month on average, paying £3,229 to rent within 30 minutes of the city centre - a 35% reduction.
Opt to rent a 45-minute train ride from the city centre and this monthly rental cost falls further still, with the average tenant paying £2,599, a further 19% reduction and a saving of £629 per month.
However, for those who look even further afield for rental affordability, living an hour outside of the city centre will see them save the most.
The average cost of renting 60 minutes from central London currently sits at £2,210 per month. That’s 15% less than the cost of renting 45 minutes from the capital and monthly saving of £390.
It’s also a huge 56% more affordable than renting just 15 minutes from the city centre, allowing tenants to reduce their rental outgoings by £2,765 per month.
Ahmed Gamal, founder and CEO of Rentd, commented: “With the cost of living starting to climb, the capital’s tenants will be understandably worried about the year ahead and, for the vast majority, the rent they pay will be the most significant outgoing they have to cover.
"At the same time, a return to post-pandemic normality is also driving rental value growth within central London, in particular, so the capital’s tenants must once again find that balance between location and cost.
"Of course, there is a range of factors to consider, but by looking from the inside out, there are considerable savings to be made. By adjusting their desired location and looking a further 15 minutes down the line, they could save themselves hundreds of pounds a month.”
