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Housing costs

Key points

  • In 2015 the average house price in London was £500,000 close to double the England average at £280,000. This gap has grown in the last five years with the house prices in London increasing by around 50% compared to 30% for England as a whole.
  • But the London cost premium is greater in the private rented sector with the average monthly rent at £1,600 more than double the England average at £770. Whilst private rents have grown at a slower rate than house prices in the last five years, rents in London have grown faster than the rest of England so the gap has widened.
  • Social sector rents in London are about a third of the cost of private sector rents at £520 per month in registered landlord accommodation and £440 for local authority housing. But these rents have also been rising in London at 28%. For registered landlords this is higher than the England average.

What does this table show?

This table shows how housing costs in London have changed in the last five years compared to the average for England. In 2015 the average house price in London was £500,000 close to double the England average at £280,000. This gap has grown in the last five years with the house prices in London increasing by around 50% compared to 30% for England as a whole.

But the London cost premium is greater in the private rented sector with the average monthly rent at £1,600 more than double the England average at £770. Whilst private rents have grown at a slower rate than house prices in the last five years, rents in London have grown faster than the rest of England so the gap has widened.

Social sector rents in London are about a third of the cost of private sector rents at £520 per month in registered landlord accommodation and £440 for local authority housing. But these rents have also been rising in London at 28%. For registered landlords this is higher than the England average. But whilst London's social rents are higher than the England average, the gap between affordable and market in London is higher and is likely to be sustained with the Government's intention to cap social rented sector rent increases at 1%.

Data used

House Price Indices and Private Rental Inflation Index, ONS; Private Rental Market Statistics, VOA; Social Housing Lettings, DCLG

Indicator last updated: 19 October 2015