As a result of the areas wealth and property values, renting an apartment or flat in London is often a costly endeavor. Currently, tenants are facing drastic increases in rents as landlords are pushing prices back to levels not seen since the economic recession.
The largest increases for property to rent in London are typically found in the south-east where an increase of 3% per month is considered the norm. These increases in rent payments for London properties have greatly affected the typical tenant's ability to pay. As a result of the rising rent payments, many tenants have fallen behind with their payments or defaulted on their contract.
To rent property in London, as a result of the many people defaulting on their payments or falling behind on rent, a typical landlord will require a significant deposit. The hefty deposit phases out first-time buyers who look to rent property in London, but cannot afford a sizable deposit.
This however does not pose a problem for the majority of the market, after all apartment prices are exorbitantly high because a steady demand is present in the market. Property to rent in London is extremely costly because of the macroeconomic conditions and their effect on the housing market. A person looking to rent property in London will do so because he/she does not want to be vulnerable to a crash in the housing market, and a subsequent decline in their hefty investment.