The London housing crisis is still going strong as 2023 comes to an end but the successful and reliable Greycoat Real Estate Agency notices some interesting developments that may change how things play out in 20224. For one thing, housing prices are starting to come down though they remain much higher than pre pandemic prices. Even so, rental prices continue to soar out of control with rental costs now eating up around 43% of people’s income on average.
Price Hikes Up to 30%
One of the worst developments this year for renters is the fact that house prices are up as much as 30%. Greycoat Real Estate notes that in many cases, renters simply cannot afford to pay these prices. While there is legislation being looked at regarding this problem, it has stalled and won’t be put into practice anytime soon.
Many people think that sky-high rent prices happened because of the pandemic. And while this is partially true, there is more to the story. Greycoat Real Estate would like to remind everyone that rents went up when housing became less affordable after the pandemic. As more people seek to rent, landlords raise their prices to meet demand. However, as housing prices begin to fall, rental prices continue to rise.
Looking at the Numbers
Greycoat Real Estate agency would like people to look at some of the numbers surrounding this housing crisis. Right now the amount people in the whole United Kingdom are paying for rent totals around the same amount as all homes sold in London the previous year. Speaking of London, the people there have spent £32.1 billion on rent which is more than the combined total of people living in the Midlands, Scotland, the North East, and Wales.