It’s easy to understand the lure of London, from the capital’s bright lights to the high-earning job opportunities that it provides. However, the cost of living in London can be prohibitive, with the capital ranked as the 46th most expensive city to live in the world (from a selection of 477 global locations).
Perhaps the biggest cost for any London resident is rent, with the average price of new tenancies in the capital estimated at £1,665 each month. Overall, it’s thought that rents in London increased by 3.1% last year in comparison with 2018’s figures, highlighting the challenges facing new renters in the area.
In this post, we’ll explore this further, while asking how to become a new tenant in London in 2020.
Rent in London – The Key Considerations
While we’ve discussed the average rents in the capital, it’s important to know that this can vary wildly from one borough to another.
For example, the South London borough of Croydon (which sits at the most affordable end of the spectrum) commands rents of just £1,136 per month, whereas the corresponding figure in Westminster is a hefty £2,526.
Of course, much also depends on the size of the property that you look to rent. With even one-bedroom and studio apartments likely to cost you significant amounts of money as a new tenant.
Renting a studio apartment in the fashionable borough of Marylebone will cost you £1,780 per month on average, while a one-bedroom flat in the same area will set you back £2,509 over the same period.
Conversely, you can rent a three-bedroom house in southeast London’s Abbey Wood for just £1,285 per month, and this highlights how location and your precise accommodation needs impact on your cost as a tenant.
With these points in mind, it’s crucial that you develop an accurate and manageable budget as an aspiring tenant. Before targeting areas that are comfortably within your means.
If you’re operating on a tight or restricted budget but want seamless access to the capital. We’d recommend reviewing boroughs such as Dartford. This is sets in Kent and resides on the outskirts of London. But it also benefits from outstanding transport links that make commuting quick and efficient.
This is an important balance to strike. While you should also note that regions such as Dartford are home to genuinely affordable properties.
What Else do You Need to Know?
Once you’ve found a property, the next step is to understand your rights. And duties as a tenant and take out any necessary insurance.
When it comes to the latter, investing in comprehensive tenants’ contents insurance should be your major priority. There are plenty for insurers that offer this type of coverage. And your task is to find bespoke and tailored policies that guarantee you genuine value for your money.
If you’re renting social housing, we’d also recommend reviewing the Tenants’ Agreement and Handbook. As this will form part of your tenancy agreement with the City of London Corporation.
If you’re intending to house share as a way of curbing costs. You should definitely let your contents insurers know that you won’t be living alone.
Otherwise, you could run the risk of invalidating your insurance. Costing potentially hundreds of pounds in the event of fire, theft or accidental damage in the property.