Rents in the capital are considerably higher now than before the last General Election, providing landlords with more opportunity for profit.
The latest Buy to Let index from Your Move and Reeds Rains revealed that rents have increased by 27.4 per cent in the last five years. This is significantly above the rate of Consumer Price Inflation (CPI) which increased by 11.6 per cent over the same period.
The national average for rent also rose by 15.2 per cent since the last General Election, leaving average rents for England and Wales at £768 in March.
That figure was higher still in London where the average monthly rent totalled £1,177 to reflect growing demand for property in the capital and across the country.
Adrian Gill, Director of Your Move and Reeds Rains, suggested the rental sector is “carrying the weight of the housing crisis” and urged action to address supply issues.
“Without more homes every year to match a rising population, housing will inevitably become more expensive... Over the next five years politicians of all stripes can’t just hope that this problem will go away – Britain needs more homes, and over the long term, investment by landlords will only provide places to live as quickly as those homes are given planning permission and completed.”
The leading political parties have all outlined promises ahead of the General Election to tackle issues of supply and demand in the housing market.
The Conservatives plan to extend the Right to Buy scheme to 1.3 million more homes while promising 200,000 homes for first-time buyers aged under 40 at a discount of 20 per cent.
Labour meanwhile have promised a similar number of homes by 2020 as well as three-year tenancy agreements and a ‘ceiling’ on potential rent increases.
The Liberal Democrats are targeting 300,000 new developments a year as well as 30,000 rent-to-own homes a year by 2020.
UKIP have proposals relating to the development of previously built-on land while the Green Party wants rental caps and the introduction of five-year tenancies.
All party promises include little detail on how their promises will be achieved while the targeted levels of new building are significantly above any yearly totals for completions in the past five years.